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

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  • Hao Wang
  • Qi Luo

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%.

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  • Hao Wang & Qi Luo, 2020. "How colonial legacy shapes the impact of inward FDI on GDP? Evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 27(9), pages 740-743, May.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:9:p:740-743
    DOI: 10.1080/13504851.2019.1644437
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    Cited by:

    1. Wang, Hao & Luo, Qi, 2022. "Can a colonial legacy explain the pollution haven hypothesis? A city-level panel analysis," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 482-495.
    2. 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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