Work

How does China’s resource tax law affect resource-based firms’ total factor productivity?

Year: 2024

Type: article

Abstract: Using panel data of A-shares during 2017–2022 and the difference-in-differences approach, this study investigates the effect of China’s resource tax law (RTL) on firms’ total factor productivity (TFP). The benchmark and robustness tests demonstrate a significant promotional impact of RTL on resource-based firm TFP. Besides, quantile analysis reveals that the RTL positively affects firms with higher initial TFP levels more than those with lower levels. The RTL’s effect on firms’ TFP emerges (becomes stronger) only if research and development investments (government subsidies) reach a certain value. Heterogeneity analyses show that the RTL has various impacts on different types of firms.

Source: Sustainable Futures

DOI: 10.1016/j.sftr.2024.100400

Authors: Yu He, Xiaoqi Zhang, Xingyan Zhang

Institution: Chongqing Technology and Business University

Language: English

Topic: Corporate Taxation and Avoidance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,880

Funders: National Office for Philosophy and Social Sciences, National Social Science Fund of China