Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/180355
Authors: 
Wang, Hao
Fidrmuc, Jan
Tian, Yunhua
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper 7093
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 during 2006-15. 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.
Subjects: 
foreign direct investment
colonization
human capital
China
JEL: 
F21
F54
O15
Document Type: 
Working Paper

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