This study uses a Brazilian tax reform to analyse the production loss caused by turnover taxes, a type of tax common in developing countries that distorts transactions between firms. It finds that removing a turnover tax led to a large expansion of Brazilian sectors that use intermediate inputs more intensively.
Caprettini, B. Turnover Taxes and Productivity: Evidence from a Brazilian Tax Reform. CEPR, London, UK (2015) 3 pp.
PEDL Research Note.Turnover Taxes and Productivity: Evidence from a Brazilian Tax Reform