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The intergenerational transmission of historical conflicts: An application to China’s trade

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  • Ouyang, Difei
  • Yuan, Weidi

Abstract

We study the legacy effect and transmission mechanisms of historical conflicts on contemporary trade. Using new data on the regional dispersion of civilian deaths due to massacres in the Sino-Japanese war (1931–1945), we find that local conflict intensity predicts international trade patterns of Chinese corporations three generations later. We further explore the transmission mechanism of collective war memory. Conflict intensity correlates with measures of anti-Japanese sentiments inferred from survey data and it appears to be transmitted both through war dramas in the mass media as well as official commemorations. We also find evidence that the trade-inhibiting effect increases with the time exposed to collective war memory.

Suggested Citation

  • Ouyang, Difei & Yuan, Weidi, 2021. "The intergenerational transmission of historical conflicts: An application to China’s trade," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 675-692.
    • Handle: RePEc:eee:jcecon:v:49:y:2021:i:3:p:675-692
    DOI: 10.1016/j.jce.2021.01.005
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    3. Bai, Yu & Arabadzhyan, Anastasia & Li, Yanjun, 2022. "The legacy of the Great Wall," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 120-147.

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    More about this item

    Keywords

    Historical conflicts; Trade; Collective memory; Transmission mechanism;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East
    • N95 - Economic History - - Regional and Urban History - - - Asia including Middle East
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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