Corporate Tax Burden and the Digitalization of Global Value Chains

Evidence From Chinese Listed Firms

Bibliographic Data

ID16915882
AuthorsWanru Wang (0009-0001-1879-2013, Capital University of Economics and Business), Beiqi Xuanyuan (0009-0003-0435-8245, Capital University of Economics and Business, corresponding author), Xuhui Peng (0000-0002-1614-3968, Western Sydney University)
Year2025
Volume15
Issue3
Publication date2025-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/21582440251353272
OpenAlexW4413832209
LanguageEN
References cited80

Despite the rapid development in digital technology, the influence of taxation on firm-level digital transformation in global value chains (GVCs) remains unclear. To empirically test this impact, this study uses a logit model with a sample comprising 1,742 Chinese listed firms in the period 2003 to 2016. The results indicate that higher tax burdens hinder firms’ participation in the digitalization of GVCs, especially in less developed regions and non-high-tech industries. Furthermore, the results regarding the mediation effects highlight that tax incentives for firms positively impact their ability to invest in research and development and adopt digital technologies, thereby enhancing their potential to participate fully in the digitalization of GVCs. These findings offer valuable insights that deepen the understanding of the role of tax incentives in promoting digital transformation and reshaping firms’ participation in GVCs. JEL Classification: F14, F23, H25, O31

Business · Corporate Tax · Economics · Public economics · Statistics · Tax avoidance · Value-added tax · Corporate Finance and Governance · Corporate Taxation and Avoidance · Mathematics · Taxation and Compliance Studies · Accounting

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