The impact of the first Sino-Japanese war indemnity: Transfer problem reexamined

被引:3
作者
Dong, Baomin [1 ,2 ]
Guo, Yibei [2 ]
机构
[1] Henan Univ, Sch Econ, Ctr Yellow River Civilizat & Sustainable Dev, Kaifeng, Peoples R China
[2] Henan Univ, Sch Econ, Kaifeng 475000, Henan, Peoples R China
关键词
The Sino-Japanese war; Indemnity; Transfer problem; MONETARY-POLICY;
D O I
10.1016/j.iref.2018.03.013
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
The first Sino-Japanese war that took place in 1894-1895 was concluded with Japan's victory and the Treaty of Shimonoseki which in effect requires China to pay a war indemnity of 230 million taels of K.P. silver; cede Taiwan to Japan in perpetuity and full sovereignty; open treaty ports for Japanese export and investment, etc. The amount of indemnity was about a quarter of Japan's GDP at the time. In contrary to the effect of Franco-Prussia war indemnity payment on France studied in Devereux and Smith (2007), China's post war terms-of-trade was improved. Using a small open economy (SOE) full DGE model, this paper investigates the impacts of the war indemnity on China's economy for 1895-1900, particularly issues related to the "transfer problem". Our simulation results predict an improvement of the terms of trade which fits the Chinese history. The assumptions of two-goods setting, import markup, and SOE explain the difference in results between the current paper and Devereux and Smith (2007).
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页码:15 / 26
页数:12
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