Corporate tax policy and heterogeneous firm innovation: Evidence from a developing country
Author
Abstract
Suggested Citation
DOI: 10.1016/j.jce.2019.02.005
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Kalina Manova, 2013.
"Credit Constraints, Heterogeneous Firms, and International Trade,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(2), pages 711-744.
- Kalina Manova, 2008. "Credit Constraints, Heterogeneous Firms, and International Trade," NBER Working Papers 14531, National Bureau of Economic Research, Inc.
- Feng, Ling & Li, Zhiyuan & Swenson, Deborah L., 2016.
"The connection between imported intermediate inputs and exports: Evidence from Chinese firms,"
Journal of International Economics, Elsevier, vol. 101(C), pages 86-101.
- Ling Feng & Zhiyuan Li & Deborah L. Swenson, 2012. "The Connection between Imported Intermediate Inputs and Exports: Evidence from Chinese Firms," IAW Discussion Papers 86, Institut für Angewandte Wirtschaftsforschung (IAW).
- Ling Feng & Zhiyuan Li & Deborah L. Swenson, 2012. "The Connection between Imported Intermediate Inputs and Exports: Evidence from Chinese Firms," NBER Working Papers 18260, National Bureau of Economic Research, Inc.
- Nina Pavcnik, 2002.
"Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(1), pages 245-276.
- Nina Pavcnik, 2000. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants," NBER Working Papers 7852, National Bureau of Economic Research, Inc.
- Chang-Tai Hsieh & Zheng (Michael) Song, 2015. "Grasp the Large, Let Go of the Small: The Transformation of the State Sector in China," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 50(1 (Spring), pages 295-366.
- Manuel Trajtenberg, 1990. "A Penny for Your Quotes: Patent Citations and the Value of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 172-187, Spring.
- Liu, Qing & Qiu, Larry D., 2016. "Intermediate input imports and innovations: Evidence from Chinese firms' patent filings," Journal of International Economics, Elsevier, vol. 103(C), pages 166-183.
- Rajan, Raghuram G & Zingales, Luigi, 1998.
"Financial Dependence and Growth,"
American Economic Review, American Economic Association, vol. 88(3), pages 559-586, June.
- Raghuram G. Rajan & Luigi Zingales, "undated". "Financial Dependence and Growth," CRSP working papers 344, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Raghuram G. Rajan & Luigi Zingales, 1996. "Financial Dependence and Growth," NBER Working Papers 5758, National Bureau of Economic Research, Inc.
- Grossman, Gene M & Helpman, Elhanan, 1991.
"Endogenous Product Cycles,"
Economic Journal, Royal Economic Society, vol. 101(408), pages 1214-1229, September.
- Gene M. Grossman & Elhanan Helpman, 1989. "Endogenous Product Cycles," NBER Working Papers 2913, National Bureau of Economic Research, Inc.
- Grossman, G.M. & Helpman, E., 1989. "Endogemour Product Cycles," Papers 10-89, Tel Aviv.
- Aghion, Philippe & Howitt, Peter, 1992.
"A Model of Growth through Creative Destruction,"
Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," University of Western Ontario, Departmental Research Report Series 8904, University of Western Ontario, Department of Economics.
- Li, Xibao, 2012. "Behind the recent surge of Chinese patenting: An institutional view," Research Policy, Elsevier, vol. 41(1), pages 236-249.
- Lauren Cohen & Karl Diether & Christopher Malloy, 2013. "Misvaluing Innovation," The Review of Financial Studies, Society for Financial Studies, vol. 26(3), pages 635-666.
- Hu, Albert G.Z. & Zhang, Peng & Zhao, Lijing, 2017. "China as number one? Evidence from China's most recent patenting surge," Journal of Development Economics, Elsevier, vol. 124(C), pages 107-119.
- James R. Brown & Steven M. Fazzari & Bruce C. Petersen, 2009. "Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom," Journal of Finance, American Finance Association, vol. 64(1), pages 151-185, February.
- Zhao Chen & Zhikuo Liu & Juan Carlos Suárez Serrato & Daniel Yi Xu, 2021.
"Notching R&D Investment with Corporate Income Tax Cuts in China,"
American Economic Review, American Economic Association, vol. 111(7), pages 2065-2100, July.
- Zhao Chen & Zhikuo Liu & Juan Carlos Suárez Serrato & Daniel Yi Xu, 2018. "Notching R&D Investment with Corporate Income Tax Cuts in China," NBER Working Papers 24749, National Bureau of Economic Research, Inc.
- Rao, Nirupama, 2016. "Do tax credits stimulate R&D spending? The effect of the R&D tax credit in its first decade," Journal of Public Economics, Elsevier, vol. 140(C), pages 1-12.
- Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
- Brandt, Loren & Van Biesebroeck, Johannes & Zhang, Yifan, 2012.
"Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing,"
Journal of Development Economics, Elsevier, vol. 97(2), pages 339-351.
- Loren Brandt & Johannes Van Biesebroeck & Yifan Zhang, 2009. "Creative Accounting or Creative Destruction? Firm-level Productivity Growth in Chinese Manufacturing," NBER Working Papers 15152, National Bureau of Economic Research, Inc.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004.
"How Much Should We Trust Differences-In-Differences Estimates?,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
- Chang-Tai Hsieh & Zheng (Michael) Song, 2015. "Grasp the Large, Let Go of the Small: The Transformation of the State Sector in China," NBER Working Papers 21006, National Bureau of Economic Research, Inc.
- Hongbin Cai & Qiao Liu, 2009.
"Competition and Corporate Tax Avoidance: Evidence from Chinese Industrial Firms,"
Economic Journal, Royal Economic Society, vol. 119(537), pages 764-795, April.
- Hongbin Cai & Qiao Liu, 2009. "Competition and Corporate Tax Avoidance: Evidence from Chinese Industrial Firms," Economic Journal, Royal Economic Society, vol. 119(537), pages 764-795, April.
- Hall, Bronwyn & Van Reenen, John, 2000. "How effective are fiscal incentives for R&D? A review of the evidence," Research Policy, Elsevier, vol. 29(4-5), pages 449-469, April.
- Mukherjee, Abhiroop & Singh, Manpreet & Žaldokas, Alminas, 2017.
"Do corporate taxes hinder innovation?,"
Journal of Financial Economics, Elsevier, vol. 124(1), pages 195-221.
- Abhiroop Mukherjee & Alminas Zaldokas, 2017. "Do Corporate Taxes Hinder Innovation?," HKUST IEMS Thought Leadership Brief Series 2017-16, HKUST Institute for Emerging Market Studies, revised Jul 2017.
- Bloom, Nick & Griffith, Rachel & Van Reenen, John, 2002.
"Do R&D tax credits work? Evidence from a panel of countries 1979-1997,"
Journal of Public Economics, Elsevier, vol. 85(1), pages 1-31, July.
- Nicholas Bloom & Rachel Griffith & John Van Reenen, 2007. "Do R&D Tax Credits Work? Evidence from a Panel of Countries 1979-1997," Discussion Papers 07-020, Stanford Institute for Economic Policy Research.
- Atanassov, Julian & Liu, Xiaoding, 2020. "Can Corporate Income Tax Cuts Stimulate Innovation?," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 55(5), pages 1415-1465, August.
- Howell, Anthony, 2016. "Firm R&D, innovation and easing financial constraints in China: Does corporate tax reform matter?," Research Policy, Elsevier, vol. 45(10), pages 1996-2007.
- Chang-Tai Hsieh & Zheng (Michael) Song, 2015. "Grasp the Large, Let Go of the Small: The Transformation of the State Sector in China," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 46(1 (Spring), pages 295-366.
- John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 20(3), pages 372-392, Autumn.
- Hirshleifer, David & Hsu, Po-Hsuan & Li, Dongmei, 2013. "Innovative efficiency and stock returns," Journal of Financial Economics, Elsevier, vol. 107(3), pages 632-654.
- Robert C. Feenstra & Zhiyuan Li & Miaojie Yu, 2014.
"Exports and Credit Constraints under Incomplete Information: Theory and Evidence from China,"
The Review of Economics and Statistics, MIT Press, vol. 96(4), pages 729-744, October.
- Robert C. Feenstra & Zhiyuan Li & Miaojie Yu, 2011. "Exports and Credit Constraints Under Incomplete Information: Theory and Evidence from China," NBER Working Papers 16940, National Bureau of Economic Research, Inc.
- Hu, Albert Guangzhou & Jefferson, Gary H., 2009. "A great wall of patents: What is behind China's recent patent explosion?," Journal of Development Economics, Elsevier, vol. 90(1), pages 57-68, September.
- Bettina Becker, 2015. "Public R&D Policies And Private R&D Investment: A Survey Of The Empirical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 917-942, December.
- John R. Baldwin & Wulong Gu, 2004.
"Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation,"
Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 372-392, Autumn.
- Baldwin, John R., 2004. "Trade Liberalization: Export-market Participation, Productivity Growth and Innovation," Economic Analysis (EA) Research Paper Series 2004027e, Statistics Canada, Analytical Studies Branch.
- Atanassov, Julian & Liu, Xiaoding, 2020. "Can Corporate Income Tax Cuts Stimulate Innovation? - ERRATUM," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 55(5), pages 1755-1755, August.
- Himmelberg, Charles P & Petersen, Bruce C, 1994.
"R&D and Internal Finance: A Panel Study of Small Firms in High-Tech Industries,"
The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 38-51, February.
- Charles P. Himmelberg & Bruce C. Petersen, 1991. "R&D and internal finance: a panel study of small firms in high-tech industries," Working Paper Series, Macroeconomic Issues 91-25, Federal Reserve Bank of Chicago.
- Joshua Lerner, 1994. "The Importance of Patent Scope: An Empirical Analysis," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 319-333, Summer.
- Sakakibara, Mariko & Branstetter, Lee, 2001.
"Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms,"
RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 77-100, Spring.
- Mariko Sakakibara & Lee Branstetter, 1999. "Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms," NBER Working Papers 7066, National Bureau of Economic Research, Inc.
- Liu, Qing & Lu, Yi, 2015. "Firm investment and exporting: Evidence from China's value-added tax reform," Journal of International Economics, Elsevier, vol. 97(2), pages 392-403.
- Grossman, Gene M & Helpman, Elhanan, 1991.
"Endogenous Product Cycles,"
Economic Journal, Royal Economic Society, vol. 101(408), pages 1214-1229, September.
- Gene M. Grossman & Elhanan Helpman, 1989. "Endogenous Product Cycles," NBER Working Papers 2913, National Bureau of Economic Research, Inc.
- Grossman, G.M. & Helpman, E., 1989. "Endogenous Prduct Cycles," Papers 144, Princeton, Woodrow Wilson School - Public and International Affairs.
- Eric Zwick & James Mahon, 2017.
"Tax Policy and Heterogeneous Investment Behavior,"
American Economic Review, American Economic Association, vol. 107(1), pages 217-248, January.
- Eric Zwick & James Mahon, 2016. "Tax Policy and Heterogeneous Investment Behavior," NBER Working Papers 21876, National Bureau of Economic Research, Inc.
- Jean O. Lanjouw & Mark Schankerman, 2004. "Patent Quality and Research Productivity: Measuring Innovation with Multiple Indicators," Economic Journal, Royal Economic Society, vol. 114(495), pages 441-465, April.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Liu, Qing & Qiu, Larry D. & Wei, Xing & Zhan, Chaoqun, 2024. "The (dis)connection between R&D and productivity in China: Policy implications of R&D tax credits," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 297-320.
- Fang, Jing & He, Hui & Li, Nan, 2020.
"China's rising IQ (Innovation Quotient) and growth: Firm-level evidence,"
Journal of Development Economics, Elsevier, vol. 147(C).
- Hui He & Ms. Nan Li & Jing Fang, 2016. "China’s Rising IQ (Innovation Quotient) and Growth: Firm-level Evidence," IMF Working Papers 2016/249, International Monetary Fund.
- Jiang, Xiandeng & Kong, Dongming & Xiao, Chengrui, 2020. "Policy certainty and heterogeneous firm innovation: Evidence from China," China Economic Review, Elsevier, vol. 63(C).
- Antonio Rodriguez-Lopez & Miaojie Yu, 2017. "All-Around Trade Liberalization and Firm-Level Employment: Theory and Evidence from China," CESifo Working Paper Series 6710, CESifo.
- Knoll, Bodo & Riedel, Nadine & Schwab, Thomas & Todtenhaupt, Maximilian & Voget, Johannes, 2021. "Cross-border effects of R&D tax incentives," Research Policy, Elsevier, vol. 50(9).
- Yi Che & Jinqiu Lv & Yan Zhang, 2024. "Educated workers and firms' exporting behavior: The case of China," Review of International Economics, Wiley Blackwell, vol. 32(3), pages 1104-1148, August.
- Liu, Qing & Qiu, Larry D., 2016. "Intermediate input imports and innovations: Evidence from Chinese firms' patent filings," Journal of International Economics, Elsevier, vol. 103(C), pages 166-183.
- Mukherjee, Abhiroop & Singh, Manpreet & Žaldokas, Alminas, 2017.
"Do corporate taxes hinder innovation?,"
Journal of Financial Economics, Elsevier, vol. 124(1), pages 195-221.
- Abhiroop Mukherjee & Alminas Zaldokas, 2017. "Do Corporate Taxes Hinder Innovation?," HKUST IEMS Thought Leadership Brief Series 2017-16, HKUST Institute for Emerging Market Studies, revised Jul 2017.
- Michael König & Kjetil Storesletten & Zheng Song & Fabrizio Zilibotti, 2022.
"From Imitation to Innovation: Where Is All That Chinese R&D Going?,"
Econometrica, Econometric Society, vol. 90(4), pages 1615-1654, July.
- Storesletten, Kjetil & Koenig, Michael & Song, Zheng & Zilibotti, Fabrizio, 2020. "From Imitation to Innovation: Where Is all that Chinese R&D Going?," CEPR Discussion Papers 14966, C.E.P.R. Discussion Papers.
- Michael König & Zheng Michael Song & Kjetil Storesletten & Fabrizio Zilibotti, 2020. "From Imitation to Innovation: Where Is all that Chinese R&D Going?," NBER Working Papers 27404, National Bureau of Economic Research, Inc.
- Li, Xiaogang, 2020. "Innovation, market valuations, policy uncertainty and trade: Theory and evidence," ISU General Staff Papers 202001010800009179, Iowa State University, Department of Economics.
- Jun Wang & Congcong Liu & Zhuan Xie & Guangjun Shen, 2024. "Tax incentives and corporate innovation: Evidence from China's value‐added tax reform," Contemporary Economic Policy, Western Economic Association International, vol. 42(1), pages 183-202, January.
- Fengfei Li & Tse‐Chun Lin, 2022. "Innovative firms’ cash holdings, tax policies, and institutional environments," Financial Management, Financial Management Association International, vol. 51(3), pages 869-902, September.
- Rong, Zhao & Wu, Xiaokai & Boeing, Philipp, 2017.
"The effect of institutional ownership on firm innovation: Evidence from Chinese listed firms,"
Research Policy, Elsevier, vol. 46(9), pages 1533-1551.
- Rong, Zhao & Wu, Xiaokai & Boeing, Philipp, 2017. "The effect of institutional ownership on firm innovation: Evidence from Chinese listed firms," ZEW Discussion Papers 17-005, ZEW - Leibniz Centre for European Economic Research.
- Chen, Sheng-Syan & Kao, Wei-Chuan & Wang, Yanzhi, 2021. "Tax policy and innovation performance: Evidence from enactment of the alternative simplified credit," Journal of Banking & Finance, Elsevier, vol. 125(C).
- David Autor & David Dorn & Gordon H. Hanson & Gary Pisano & Pian Shu, 2020.
"Foreign Competition and Domestic Innovation: Evidence from US Patents,"
American Economic Review: Insights, American Economic Association, vol. 2(3), pages 357-374, September.
- Dorn, David & Autor, David & Hanson, Gordon & Pisano, Gary P. & Shu, Pian, 2016. "Foreign Competition and Domestic Innovation: Evidence from U.S. Patents," CEPR Discussion Papers 11664, C.E.P.R. Discussion Papers.
- David H. Autor & David Dorn & Gordon H. Hanson & Gary Pisano & Pian Shu, 2019. "Foreign Competition and Domestic Innovation: Evidence from U.S. Patents," CESifo Working Paper Series 7865, CESifo.
- Autor, David & Dorn, David & Hanson, Gordon H. & Pisano, Gary & Shu, Pian, 2019. "Foreign Competition and Domestic Innovation: Evidence from U.S. Patents," IZA Discussion Papers 12638, Institute of Labor Economics (IZA).
- David Autor & David Dorn & Gary Pisano & Gordon Hanson & Pian Shu, 2018. "Foreign Competition and Domestic Innovation: Evidence from U.S. Patents," 2018 Meeting Papers 239, Society for Economic Dynamics.
- David Autor & David Dorn & Gordon H. Hanson & Gary Pisano & Pian Shu, 2016. "Foreign Competition and Domestic Innovation: Evidence from U.S. Patents," NBER Working Papers 22879, National Bureau of Economic Research, Inc.
- He, Lerong & Jiang, Xiaozhen & Fang, Liting, 2023. "Tax policy reform and corporate innovation in China," Finance Research Letters, Elsevier, vol. 55(PA).
- Feld, Lars P. & Schmidt, Christoph M. & Schnabel, Isabel & Truger, Achim & Wieland, Volker, 2019. "Den Strukturwandel meistern. Jahresgutachten 2019/20 [Dealing with Structural Change. Annual Report 2019/20]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201920, September.
- Brown, James R. & Martinsson, Gustav & Petersen, Bruce C., 2017. "What promotes R&D? Comparative evidence from around the world," Research Policy, Elsevier, vol. 46(2), pages 447-462.
- Qing Liu & Larry D Qiu, 2017. "Effects of Intermediate Input Tariff Reduction on Innovations in China," Working Papers 022017, Hong Kong Institute for Monetary Research.
- Baccini, Leonardo & Impullitti, Giammario & Malesky, Edmund J., 2019.
"Globalization and state capitalism: Assessing Vietnam's accession to the WTO,"
Journal of International Economics, Elsevier, vol. 119(C), pages 75-92.
- Leonardo Baccini & Giammario Impullitti & Edmund J. Malesky, 2017. "Globalization and State Capitalism: Assessing Vietnam's Accession to the WTO," CESifo Working Paper Series 6618, CESifo.
- Baccini, Leonardo & Impullitti, Giammario & Malesky, Edmund J., 2019. "Globalization and state capitalism: assessing Vietnam's accession to the WTO," LSE Research Online Documents on Economics 102602, London School of Economics and Political Science, LSE Library.
- Leonardo Baccini & Giammario Impullitti & Edmund J. Malesky, 2019. "Globalization and state capitalism: assessing Vietnam's accession to the WTO," CEP Discussion Papers dp1593, Centre for Economic Performance, LSE.
- Leonardo Baccini & Giammario Impullitti & Edmund J. Malesky, 2017. "Globalization and State Capitalism: Assessing Vietnam’s Accession to the WTO," Discussion Papers 2017-10, University of Nottingham, GEP.
More about this item
Keywords
Corporate income taxes; Innovation; Difference-in-differences;All these keywords.
JEL classification:
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jcecon:v:47:y:2019:i:2:p:470-486. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622864 .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.