Once an Enemy, Forever an Enemy? The Long-run Impact of Japanese Occupation of China on Trade and Investment


Grant Data
Project Title
Once an Enemy, Forever an Enemy? The Long-run Impact of Japanese Occupation of China on Trade and Investment
Principal Investigator
Professor Tao, Zhigang   (Principal investigator)
Co-Investigator(s)
Dr Lu Yi   (Co-Investigator)
Duration
24
Start Date
2013-02-01
Completion Date
2015-01-31
Amount
198380
Conference Title
Presentation Title
Keywords
Japanese Occupation of China, Trade, Direct Investment
Discipline
Economics
Panel
Business Studies (B) (under H Panel before 2011/12)
Sponsor
RGC General Research Fund (GRF)
HKU Project Code
HKU 753312B
Grant Type
General Research Fund (GRF)
Funding Year
2012/2013
Status
Completed
Objectives
1) We plan to employ the trade model of Helpman, Melitz and Rubinstein (2008), which is developed for dealing with selection bias and firm heterogeneity, to examine the impacts of Japanese occupation of China from 1937 to 1945 on current trade between the two countries. 2) We plan to use the discrete choice model developed by McFadden (1974) to examine the impacts of the Japanese occupation on FDI location choice made by the Japanese multinationals, with controls for the cost of production, market potential, agglomeration and economic institutions. 3) We will use other trade models, such as the traditional gravity model and PPMLE, to check the robustness of our findings.