| ID | 170344 |
| Title Proper | Memories of colonial law |
| Other Title Information | the inheritance of human capital and the location of joint ventures in early-reform China |
| Language | ENG |
| Author | Long, Cheryl |
| Summary / Abstract (Note) | Using a unique data set of Chinese foreign direct investment (FDI) contracts from the 1980s and early 1990s, we explore those mechanisms of historical persistence resulting from China's unique colonial experience. Adopting difference-in-differences as well as difference-in-difference-in-differences analysis within conditional logit, we provide evidence that foreign investors favored locating FDI in Chinese cities in which their home country had a colony in the 19th century and that a human-capital channel best explains this persistent impact of colonial experience. While alternative explanations for long-term persistence are not consistent with the empirical findings, the results suggest that legal human capital inherited from colonial times affected economic decisions after 1978. Thus, we attempt to advance the literature on history's long-lasting influence by proposing one particular mechanism of persistence—memory of legal institutions, or inheritance of legal human capital. |
| `In' analytical Note | China Economic Review vol.58 , Dec 2019: p.101284 |
| Journal Source | China Economic Review 2019-12 |
| Key Words | FDI ; China ; Human Capital ; Location ; Colonial Influence ; Historical Persistence |