History Related Foreign Direct Investment Research

Our research is mainly about history related FDIs issues,more generally speaking,we are studying the role played by history in economic development with econometric methods,in this way our research belongs to the subject of historical economics.The first chapter is about how the colonial history affects FDI location choice in China.We found that colonial history is a very important determinant influencing the FDI distribution in China,the influencing mechanism has also been studied in this chapter as well.In the second chapter,we moved back further to the end of Qing Dynasty to check the long term effect of Tai Ping Rebellion on FDI distribution among different treaty ports in China.Based on the records of the number of foreign firms in each treaty port,we found that the number of foreign firms in the treaty ports which had been heavily affect by Tai Ping Rebellion is significantly less than in the treaty ports which had not,and again Likin system is one of the primary cause for the uneven distribution of foreign firms.In chapter three,we checked FDI spillover effect in 1930s in China.Negative FDI spillover effect has been found in the same sector and same city,our research shows that this negative FDI spillover effect can be imputed to Likin system,in which the unbalanced tax burden between foreign firms and local Chinese firms roots.All the three researches lead us,with considerable confidence,to the one conclusion that history does matter when it comes to FDI issues in China.Our research drew a clear development path of FDI in China since the end of Qing Dynasty,which not only enable us to understand the evolution of FDI in China along history,but also shed light on the economic development of China in the last 150 years.