| ID | 143387 |
| Title Proper | Multi-product firms, product scope, and the policy of export tax rebate |
| Language | ENG |
| Author | Tan, Yong ; Han, Jian ; Ma, Yeqing |
| Summary / Abstract (Note) | This paper extends the model of Nocke and Yeaple (2014) to analyze the impact of the export tax rebate (ETR) changes on multi-product firms' product scope. In response to ETR changes, firms optimally reallocate their organizational capital, and adjust the intensive and extensive margins of production. We test the model's predictions using firm-level export and ETR data from China. We find that less profitable products, facing larger ETR reductions, and products in which China has a comparative disadvantage, are more likely to be dropped. |
| `In' analytical Note | China Economic Review Vol. 35; Sep 2015: p.33–46 |
| Journal Source | China Economic Review 2015-09 35 |
| Key Words | Export Tax Rebate ; Multi-Product Firms ; Product Scope ; Organizational Capital |