How colonial legacy shapes the impact of inward FDI on GDP? Evidence from China

Hao Wang and Qi Luo

Applied Economics Letters, 2020, vol. 27, issue 9, 740-743

Abstract: Using panel data covering 30 provinces from 2000 to 2016, we study how colonization shapes the effect of inward FDI (foreign direct investment) on GDP in China. We find that western colonization influence strengthens the positive effect of inward FDI on GDP by approximately 4–5% whereas the Japanese colonization influence overturns such effect with a negative impact around minus 20%.

Date: 2020
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DOI: 10.1080/13504851.2019.1644437

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