Jan Fidrmuc (Brunel University) - Growing on the Background of Colonization? Chinese Labor Market and FDI in an Historical Perspective
Co-authors: Hao Wang (Brunel University) and Yunhua Tian (Guangdong University of Foreign Studies)
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 promote employment and that this relationship is stronger in the regions that used to be colonized by Western countries. Conversely, regions with a legacy of Japanese colonization display a weaker – though still positive – relationship between FDI and employment.
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