| Titre : | Rebalancing in China: A taxation approach (2020) |
| Auteurs : | Damien Cubizol |
| Type de document : | Article : Revues - Articles |
| Dans : | China economic review (Vol. 60, April 2020) |
| Article en page(s) : | 101270 |
| Langues: | Anglais |
| Catégories : |
[Eurovoc] ÉCHANGES ÉCONOMIQUES ET COMMERCIAUX > consommation [Eurovoc] FINANCES > fiscalité > politique fiscale > réforme fiscale [Eurovoc] FINANCES > investissement et financement > investissement [Eurovoc] GÉOGRAPHIE > Asie - Océanie > Extrême-Orient > Chine [Eurovoc] QUESTIONS SOCIALES > protection sociale > aide sociale [JEL] F - Économie internationale > F3 - Finances internationales > F30 - Général [JEL] H - Économie publique > H2 - Fiscalité, subventions et revenus > H20 - Généralités [JEL] P - Systèmes économiques > P2 - Systèmes socialistes et économies en transition > P20 - Généralités |
| Tags : | The Chinese economy ; tax reforms ; consumption ; investment ; welfare ; financial intermediation and foreign assets |
| Résumé : | The rebalancing of the Chinese economy is analyzed through a heterogeneous taxation of various types of firms. Based on a two-country dynamic general equilibrium model, the paper applies tax reforms to raise consumption, reduce some firms' overinvestment (overcapacities) and maintain a high level of welfare. To rebalance consumption and investment, taxation may allow reallocating a part of the labor force to firms that are not overinvesting (via business taxes and social security contributions). Moreover, the correction of distortions in production factor costs (capital and labor) is necessary during certain reforms applied in the model; that is, on the one hand, higher credit costs for firms that face soft budget constraints (via financial transactions taxes) and, on the other hand, a catchup of foreign firms' wages by domestic firms (via social security contributions). These tax reforms bring welfare benefits to households and stabilize the welfare reaction to productivity shocks. Another interesting result is that in this framework, the rebalancing of the domestic demand in China does not require the readjustment of the external financial position. Indeed, the aggregate savings rate remains high and the supply of domestic assets is reduced. Finally, another model proposes a heterogeneous taxation of consumption across home and foreign goods to enhance consumption. |
| Doi : |
DOI : 10.1016/j.chieco.2019.01.009 
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| Axe de recherche : | Financement du développement |
| En ligne : | https://halshs.archives-ouvertes.fr/halshs-03051349 |
Exemplaires (1)
| Code-barres | Cote | Support | Localisation | Section | Disponibilité |
|---|---|---|---|---|---|
| 007161 | CER | Revue | Centre de documentation du CERDI / Ecole d'Economie | Salle de lecture | Disponible |
