全球智库信息集成服务系统(G2TT): DP13971 Taxation and Supplier Networks: Evidence from India

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP13971
	DP13971 Taxation and Supplier Networks: Evidence from India
	Lucie Gadenne; Roland Rathelot; Tushar Nandi
发表日期	2019-08-30
出版年	2019
语种	英语
摘要	Do tax systems distort firm-to-firm trade? This paper considers the effect of tax policy on supplier networks in a large developing economy, the state of West Bengal in India. Using administrative panel data on firms, including transaction data for 4.8 million supplier-client pairs, we first document substantial segmentation of supply chains between firms paying Value-Added Taxes (VAT) and non-VAT-paying firms. We then develop a model of firms’ sourcing and tax decisions within supply chains to understand the mechanisms through which tax policy interacts with supply networks. The model predicts partial segmentation in equilibrium because of both supply-chain distortions (taxes affect how much firms trade with each other) and strategic complementarities in firms’ decision to pay VAT. Finally, we test the model’s predictions using variations over time within firm and within supplier-client pairs. We find that the tax system distorts firms’ sourcing decisions, and evidence of strategic complementarities in firms’ tax choices within supplier networks. These two mechanisms explain a substantial share of the supply chain segmentation that we observe.
主题	Development Economics ; International Trade and Regional Economics ; Public Economics
URL	https://cepr.org/publications/dp13971
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/542852
推荐引用方式 GB/T 7714	Lucie Gadenne,Roland Rathelot,Tushar Nandi. DP13971 Taxation and Supplier Networks: Evidence from India. 2019.