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Growing against the background of colonization? Chinese labor market and FDI in a historical perspective

Author

Listed:
  • Hao Wang
  • Jan Fidrmuc

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Yunhua Tian

Abstract

This article investigates how the legacy of colonization shapes the impact of inward FDI on employment in the Chinese labor market. The analysis utilizes provincial panel on overall employment and employment in the service sector from 2006 to 2015. We find that inward FDI significantly promotes employment and that this relationship is stronger in regions once colonized by Western countries. Conversely, regions with a legacy of Japanese colonization display a weaker, and even negative, relationship between FDI and employment. These findings are robust to controlling for the length and intensity of colonization, as well as for endogeneity of FDI.

Suggested Citation

  • Hao Wang & Jan Fidrmuc & Yunhua Tian, 2020. "Growing against the background of colonization? Chinese labor market and FDI in a historical perspective," Post-Print hal-03128958, HAL.
  • Handle: RePEc:hal:journl:hal-03128958
    DOI: 10.1016/j.iref.2018.12.010
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-03128958
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    Cited by:

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    2. Wang, Hao & Han, Yonghui & Fidrmuc, Jan & Wei, Dongming, 2021. "Confucius Institute, Belt and Road Initiative, and Internationalization," International Review of Economics & Finance, Elsevier, vol. 71(C), pages 237-256.
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    4. Wang, Hao & Fidrmuc, Jan & Luo, Qi, 2021. "A spatial analysis of inward FDI and urban–rural wage inequality in China," Economic Systems, Elsevier, vol. 45(3).

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    More about this item

    Keywords

    Foreign direct investment; Colonization; Human capita; lChina;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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