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The persistent institutional effect of liberal colonialism: evidence from China’s financial policies

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  • Tong Fu
  • Zhongmei Wei
  • Ze Jian

Abstract

The effect of liberal colonialism on the allocation of capital persists to this day. We exploit the colonial history of China during 1896-1911 with qualitative evidence to measure liberal colonialism. We document that liberal colonialism promotes the subsequent efficiency of financial policies on the capital allocation in 2004 through the quality of economic institutions.

Suggested Citation

  • Tong Fu & Zhongmei Wei & Ze Jian, 2020. "The persistent institutional effect of liberal colonialism: evidence from China’s financial policies," Applied Economics, Taylor & Francis Journals, vol. 52(32), pages 3525-3537, June.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3525-3537
    DOI: 10.1080/00036846.2020.1713296
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