Topic 1 Fall of Imperial China
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Hongjiang ZhangTopic 1 Fall of Imperial China
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Hongjiang ZhangECON 2264 Political Economy of Development in China
Topic 1 Fall of Imperial China
James Kung
Faculty of Business and Economics
University of Hong Kong
January 18 2022
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 1 / 61
Fall of Imperial China
▶ Imperial China (220BC-1911AD) was a stable political institution amidst
peasant rebellion and dynastic change
▶ Qing China enjoyed a period of economic prosperity as evident in its pop-
ulation growth Population in Qing and trade surplus with its trading partners
▶ But it came to an end as a result of the Chinese Xinhai Revolution of 1911
Revolution
▶ The West played a pivotal role in building up to this revolution
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 2 / 61
Fall of Imperial China
▶ Imperial China (220BC-1911AD) was a stable political institution amidst
peasant rebellion and dynastic change
▶ Qing China enjoyed a period of economic prosperity as evident in its pop-
ulation growth Population in Qing and trade surplus with its trading partners
▶ But it came to an end as a result of the Chinese Xinhai Revolution of 1911
Revolution
▶ The West played a pivotal role in building up to this revolution
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 2 / 61
Fall of Imperial China
▶ Imperial China (220BC-1911AD) was a stable political institution amidst
peasant rebellion and dynastic change
▶ Qing China enjoyed a period of economic prosperity as evident in its pop-
ulation growth Population in Qing and trade surplus with its trading partners
▶ But it came to an end as a result of the Chinese Xinhai Revolution of 1911
Revolution
▶ The West played a pivotal role in building up to this revolution
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 2 / 61
Fall of Imperial China
▶ Imperial China (220BC-1911AD) was a stable political institution amidst
peasant rebellion and dynastic change
▶ Qing China enjoyed a period of economic prosperity as evident in its pop-
ulation growth Population in Qing and trade surplus with its trading partners
▶ But it came to an end as a result of the Chinese Xinhai Revolution of 1911
Revolution
▶ The West played a pivotal role in building up to this revolution
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 2 / 61
Roadmap
▶ Opium Wars−→ Economic Reforms
▶ Western influences via Treaty Ports
▶ Role of Political Elites and Modernization “
( Self-strengthening”Movement)
▶ Sino-Japanese War (c. 1894-95)−→ Late Qing Reforms
▶ Economic Reforms
▶ Education Reforms
▶ Role of Missionaries
▶ Political Reforms
▶ Overseas Students in Japan and Role of Ideology
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3 / 61
Roadmap
▶ Opium Wars−→ Economic Reforms
▶ Western influences via Treaty Ports
▶ Role of Political Elites and Modernization “
( Self-strengthening”Movement)
▶ Sino-Japanese War (c. 1894-95)−→ Late Qing Reforms
▶ Economic Reforms
▶ Education Reforms
▶ Role of Missionaries
▶ Political Reforms
▶ Overseas Students in Japan and Role of Ideology
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3 / 61
Roadmap
▶ Opium Wars−→ Economic Reforms
▶ Western influences via Treaty Ports
▶ Role of Political Elites and Modernization “
( Self-strengthening”Movement)
▶ Sino-Japanese War (c. 1894-95)−→ Late Qing Reforms
▶ Economic Reforms
▶ Education Reforms
▶ Role of Missionaries
▶ Political Reforms
▶ Overseas Students in Japan and Role of Ideology
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3 / 61
Roadmap
▶ Opium Wars−→ Economic Reforms
▶ Western influences via Treaty Ports
▶ Role of Political Elites and Modernization “
( Self-strengthening”Movement)
▶ Sino-Japanese War (c. 1894-95)−→ Late Qing Reforms
▶ Economic Reforms
▶ Education Reforms
▶ Role of Missionaries
▶ Political Reforms
▶ Overseas Students in Japan and Role of Ideology
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3 / 61
Roadmap
▶ Opium Wars−→ Economic Reforms
▶ Western influences via Treaty Ports
▶ Role of Political Elites and Modernization “
( Self-strengthening”Movement)
▶ Sino-Japanese War (c. 1894-95)−→ Late Qing Reforms
▶ Economic Reforms
▶ Education Reforms
▶ Role of Missionaries
▶ Political Reforms
▶ Overseas Students in Japan and Role of Ideology
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3 / 61
Roadmap
▶ Opium Wars−→ Economic Reforms
▶ Western influences via Treaty Ports
▶ Role of Political Elites and Modernization “
( Self-strengthening”Movement)
▶ Sino-Japanese War (c. 1894-95)−→ Late Qing Reforms
▶ Economic Reforms
▶ Education Reforms
▶ Role of Missionaries
▶ Political Reforms
▶ Overseas Students in Japan and Role of Ideology
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3 / 61
Roadmap
▶ Opium Wars−→ Economic Reforms
▶ Western influences via Treaty Ports
▶ Role of Political Elites and Modernization “
( Self-strengthening”Movement)
▶ Sino-Japanese War (c. 1894-95)−→ Late Qing Reforms
▶ Economic Reforms
▶ Education Reforms
▶ Role of Missionaries
▶ Political Reforms
▶ Overseas Students in Japan and Role of Ideology
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3 / 61
Roadmap
▶ Opium Wars−→ Economic Reforms
▶ Western influences via Treaty Ports
▶ Role of Political Elites and Modernization “
( Self-strengthening”Movement)
▶ Sino-Japanese War (c. 1894-95)−→ Late Qing Reforms
▶ Economic Reforms
▶ Education Reforms
▶ Role of Missionaries
▶ Political Reforms
▶ Overseas Students in Japan and Role of Ideology
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3 / 61
Roadmap
▶ Opium Wars−→ Economic Reforms
▶ Western influences via Treaty Ports
▶ Role of Political Elites and Modernization “
( Self-strengthening”Movement)
▶ Sino-Japanese War (c. 1894-95)−→ Late Qing Reforms
▶ Economic Reforms
▶ Education Reforms
▶ Role of Missionaries
▶ Political Reforms
▶ Overseas Students in Japan and Role of Ideology
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3 / 61
War Shocks
Opium Wars
▶ For a long time, China regarded itself as the Middle Kingdom, the most
civilized state under heaven. It developed a hierarchical system, the trib-
utary system, to deal with “international relations” (Fairbank and Chen,
1968)
▶ China was in the center of the system with tributary states in Asia sur-
rounding it (e.g., Korea, Vietnam, Burma)
▶ Peripheral states were required to honor China by sending tribute period-
ically, requesting the investiture of their kings, and adopting the Chinese
culture
▶ China established a limited and restricted system of international trade
known as the “Canton System”
▶ Foreigners were allowed to do business with the Chinese only in the port
city of Canton and via the institutional arrangement known as the “Thir-
teen Hongs” (Fairbank, 1980)
▶ Chinese emperors showed little interest in foreign affairs and international
trade . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 4 / 61
War Shocks
Opium Wars
▶ For a long time, China regarded itself as the Middle Kingdom, the most
civilized state under heaven. It developed a hierarchical system, the trib-
utary system, to deal with “international relations” (Fairbank and Chen,
1968)
▶ China was in the center of the system with tributary states in Asia sur-
rounding it (e.g., Korea, Vietnam, Burma)
▶ Peripheral states were required to honor China by sending tribute period-
ically, requesting the investiture of their kings, and adopting the Chinese
culture
▶ China established a limited and restricted system of international trade
known as the “Canton System”
▶ Foreigners were allowed to do business with the Chinese only in the port
city of Canton and via the institutional arrangement known as the “Thir-
teen Hongs” (Fairbank, 1980)
▶ Chinese emperors showed little interest in foreign affairs and international
trade . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 4 / 61
War Shocks
Opium Wars
▶ For a long time, China regarded itself as the Middle Kingdom, the most
civilized state under heaven. It developed a hierarchical system, the trib-
utary system, to deal with “international relations” (Fairbank and Chen,
1968)
▶ China was in the center of the system with tributary states in Asia sur-
rounding it (e.g., Korea, Vietnam, Burma)
▶ Peripheral states were required to honor China by sending tribute period-
ically, requesting the investiture of their kings, and adopting the Chinese
culture
▶ China established a limited and restricted system of international trade
known as the “Canton System”
▶ Foreigners were allowed to do business with the Chinese only in the port
city of Canton and via the institutional arrangement known as the “Thir-
teen Hongs” (Fairbank, 1980)
▶ Chinese emperors showed little interest in foreign affairs and international
trade . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 4 / 61
War Shocks
Opium Wars
▶ For a long time, China regarded itself as the Middle Kingdom, the most
civilized state under heaven. It developed a hierarchical system, the trib-
utary system, to deal with “international relations” (Fairbank and Chen,
1968)
▶ China was in the center of the system with tributary states in Asia sur-
rounding it (e.g., Korea, Vietnam, Burma)
▶ Peripheral states were required to honor China by sending tribute period-
ically, requesting the investiture of their kings, and adopting the Chinese
culture
▶ China established a limited and restricted system of international trade
known as the “Canton System”
▶ Foreigners were allowed to do business with the Chinese only in the port
city of Canton and via the institutional arrangement known as the “Thir-
teen Hongs” (Fairbank, 1980)
▶ Chinese emperors showed little interest in foreign affairs and international
trade . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 4 / 61
War Shocks
Opium Wars
▶ For a long time, China regarded itself as the Middle Kingdom, the most
civilized state under heaven. It developed a hierarchical system, the trib-
utary system, to deal with “international relations” (Fairbank and Chen,
1968)
▶ China was in the center of the system with tributary states in Asia sur-
rounding it (e.g., Korea, Vietnam, Burma)
▶ Peripheral states were required to honor China by sending tribute period-
ically, requesting the investiture of their kings, and adopting the Chinese
culture
▶ China established a limited and restricted system of international trade
known as the “Canton System”
▶ Foreigners were allowed to do business with the Chinese only in the port
city of Canton and via the institutional arrangement known as the “Thir-
teen Hongs” (Fairbank, 1980)
▶ Chinese emperors showed little interest in foreign affairs and international
trade . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 4 / 61
War Shocks
Opium Wars
▶ For a long time, China regarded itself as the Middle Kingdom, the most
civilized state under heaven. It developed a hierarchical system, the trib-
utary system, to deal with “international relations” (Fairbank and Chen,
1968)
▶ China was in the center of the system with tributary states in Asia sur-
rounding it (e.g., Korea, Vietnam, Burma)
▶ Peripheral states were required to honor China by sending tribute period-
ically, requesting the investiture of their kings, and adopting the Chinese
culture
▶ China established a limited and restricted system of international trade
known as the “Canton System”
▶ Foreigners were allowed to do business with the Chinese only in the port
city of Canton and via the institutional arrangement known as the “Thir-
teen Hongs” (Fairbank, 1980)
▶ Chinese emperors showed little interest in foreign affairs and international
trade . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 4 / 61
War Shocks
Opium Wars
▶ King of England sent George McCartney to knocking on China’s door
▶
“China, the Kingdom of the Heaven, is a place with tremendous diversified
outputs. We can produce any products and thus have no demand for the
goods from other countries. It was because the goods produced in China,
such as tea, porcelain, and silk, are the necessity for the lives in the Western
countries that I allowed, with the greatest sympathy, the western merchant
to do business (via the Canton system). ”
–A letter from Emperor Qianlong to the King of England in 1793
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 5 / 61
War Shocks
Opium Wars
▶ King of England sent George McCartney to knocking on China’s door
▶
“China, the Kingdom of the Heaven, is a place with tremendous diversified
outputs. We can produce any products and thus have no demand for the
goods from other countries. It was because the goods produced in China,
such as tea, porcelain, and silk, are the necessity for the lives in the Western
countries that I allowed, with the greatest sympathy, the western merchant
to do business (via the Canton system). ”
–A letter from Emperor Qianlong to the King of England in 1793
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 5 / 61
Western Influence –Treaty Ports
▶ Treaty ports were the port cities in China that were opened to foreign
trade mainly by the “unequal treaties” with the Western powers
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 6 / 61
Western Influence –Treaty Ports
▶ A set of privileges beyond the old Canton system
▶ Foreigners were allowed to reside and conduct business in the port cities,
to spread Christianity, and leased land in perpetuity
▶ Rights of “extraterritoriality”: Foreigners were exempted from the jurispru-
dence of the Chinese legal system but abided by the legal system of their
mother country instead (e.g., Remer, 1933)
▶ Concessions (租界) governed and occupied by foreign powers were estab-
lished in some treaty ports, e.g., Shanghai, where administrative organiza-
tions, police, and judicial systems were independent from Chinese govern-
ment
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 7 / 61
Western Influence –Treaty Ports
▶ A set of privileges beyond the old Canton system
▶ Foreigners were allowed to reside and conduct business in the port cities,
to spread Christianity, and leased land in perpetuity
▶ Rights of “extraterritoriality”: Foreigners were exempted from the jurispru-
dence of the Chinese legal system but abided by the legal system of their
mother country instead (e.g., Remer, 1933)
▶ Concessions (租界) governed and occupied by foreign powers were estab-
lished in some treaty ports, e.g., Shanghai, where administrative organiza-
tions, police, and judicial systems were independent from Chinese govern-
ment
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 7 / 61
Western Influence –Treaty Ports
▶ A set of privileges beyond the old Canton system
▶ Foreigners were allowed to reside and conduct business in the port cities,
to spread Christianity, and leased land in perpetuity
▶ Rights of “extraterritoriality”: Foreigners were exempted from the jurispru-
dence of the Chinese legal system but abided by the legal system of their
mother country instead (e.g., Remer, 1933)
▶ Concessions (租界) governed and occupied by foreign powers were estab-
lished in some treaty ports, e.g., Shanghai, where administrative organiza-
tions, police, and judicial systems were independent from Chinese govern-
ment
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 7 / 61
Western Influence –Treaty Ports
▶ A set of privileges beyond the old Canton system
▶ Foreigners were allowed to reside and conduct business in the port cities,
to spread Christianity, and leased land in perpetuity
▶ Rights of “extraterritoriality”: Foreigners were exempted from the jurispru-
dence of the Chinese legal system but abided by the legal system of their
mother country instead (e.g., Remer, 1933)
▶ Concessions (租界) governed and occupied by foreign powers were estab-
lished in some treaty ports, e.g., Shanghai, where administrative organiza-
tions, police, and judicial systems were independent from Chinese govern-
ment
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 7 / 61
Western Influence –Treaty Ports
▶ The First Opium War in 1840 changed the situation and marked the be-
ginning of the treaty-port system
▶ China was defeated by Great Britain and signed the Treaty of Nanking
(1842)
▶ Five ports were opened up to the West for international trade
▶ Shanghai, Guangzhou, Fuzhou, Xiamen, and Ningbo
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 8 / 61
Western Influence –Treaty Ports
▶ The First Opium War in 1840 changed the situation and marked the be-
ginning of the treaty-port system
▶ China was defeated by Great Britain and signed the Treaty of Nanking
(1842)
▶ Five ports were opened up to the West for international trade
▶ Shanghai, Guangzhou, Fuzhou, Xiamen, and Ningbo
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 8 / 61
Western Influence –Treaty Ports
▶ The First Opium War in 1840 changed the situation and marked the be-
ginning of the treaty-port system
▶ China was defeated by Great Britain and signed the Treaty of Nanking
(1842)
▶ Five ports were opened up to the West for international trade
▶ Shanghai, Guangzhou, Fuzhou, Xiamen, and Ningbo
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 8 / 61
Western Influence –Treaty Ports
▶ The First Opium War in 1840 changed the situation and marked the be-
ginning of the treaty-port system
▶ China was defeated by Great Britain and signed the Treaty of Nanking
(1842)
▶ Five ports were opened up to the West for international trade
▶ Shanghai, Guangzhou, Fuzhou, Xiamen, and Ningbo
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 8 / 61
Western Influence –Treaty Ports
▶ Two waves of expansion after 1840
▶ Second Opium War of 1856
▶ First Sino-Japanese War of 1894
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 9 / 61
Western Influence –Treaty Ports
▶ Two waves of expansion after 1840
▶ Second Opium War of 1856
▶ First Sino-Japanese War of 1894
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 9 / 61
Western Influence –Treaty Ports
▶ Two waves of expansion after 1840
▶ Second Opium War of 1856
▶ First Sino-Japanese War of 1894
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 9 / 61
Western Influence –Treaty Ports
▶ Second Opium War of 1856
▶ Treaty of Tientsin and Treaty of Peking
▶ TPs increased from 5 to approximately 40
▶ Foreigners (English, French, American, and Russian) were no longer con-
fined to the treaty ports but could go to inland regions as explorers, busi-
nessmen, or missionaries
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 10 / 61
Western Influence –Treaty Ports
▶ Second Opium War of 1856
▶ Treaty of Tientsin and Treaty of Peking
▶ TPs increased from 5 to approximately 40
▶ Foreigners (English, French, American, and Russian) were no longer con-
fined to the treaty ports but could go to inland regions as explorers, busi-
nessmen, or missionaries
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 10 / 61
Western Influence –Treaty Ports
▶ Second Opium War of 1856
▶ Treaty of Tientsin and Treaty of Peking
▶ TPs increased from 5 to approximately 40
▶ Foreigners (English, French, American, and Russian) were no longer con-
fined to the treaty ports but could go to inland regions as explorers, busi-
nessmen, or missionaries
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 10 / 61
Western Influence –Treaty Ports
▶ Second Opium War of 1856
▶ Treaty of Tientsin and Treaty of Peking
▶ TPs increased from 5 to approximately 40
▶ Foreigners (English, French, American, and Russian) were no longer con-
fined to the treaty ports but could go to inland regions as explorers, busi-
nessmen, or missionaries
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 10 / 61
Western Influence –Treaty Ports
▶ Second Opium War of 1856
▶ Treaty of Tientsin and Treaty of Peking
▶ TPs increased from 5 to approximately 40
▶ Foreigners (English, French, American, and Russian) were no longer con-
fined to the treaty ports but could go to inland regions as explorers, busi-
nessmen, or missionaries
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 11 / 61
Western Influence –Treaty Ports
▶ First Sino-Japanese War of 1894
▶ Treaty of Shimonoseki in 1895
▶ TPs finally reached 77 (excluding Taiwan and Hong Kong)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 12 / 61
Western Influence –Treaty Ports
▶ In total, 112 ports had been opened for over a century (1842-1943)
▶ In 1943, Great Britain and the United States signed new treaties with
China, which relinquished their extraterritoriality rights in China
▶ In 1943, all concessions were transferred to the Chinese government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 13 / 61
Western Influence –Treaty Ports
▶ In total, 112 ports had been opened for over a century (1842-1943)
▶ In 1943, Great Britain and the United States signed new treaties with
China, which relinquished their extraterritoriality rights in China
▶ In 1943, all concessions were transferred to the Chinese government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 13 / 61
Western Influence –Treaty Ports
▶ In total, 112 ports had been opened for over a century (1842-1943)
▶ In 1943, Great Britain and the United States signed new treaties with
China, which relinquished their extraterritoriality rights in China
▶ In 1943, all concessions were transferred to the Chinese government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 13 / 61
What did the Treaty Ports Bring to the Chinese Economy?
FDI and Foreign Debt
▶ Foreign direct investments (FDI)
flowed into China through the treaty
ports (the 1840s)
▶ But systematic data on FDI and for-
eign debt (FD) exist only for the pe-
riod 1902-1936
▶ FDI is everywhere above FD, and with
a widening trend since around the late
1910s
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 14 / 61
What did the Treaty Ports Bring to the Chinese Economy?
FDI and Foreign Debt
▶ Foreign direct investments (FDI)
flowed into China through the treaty
ports (the 1840s)
▶ But systematic data on FDI and for-
eign debt (FD) exist only for the pe-
riod 1902-1936
▶ FDI is everywhere above FD, and with
a widening trend since around the late
1910s
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 14 / 61
What did the Treaty Ports Bring to the Chinese Economy?
FDI and Foreign Debt
▶ Foreign direct investments (FDI)
flowed into China through the treaty
ports (the 1840s)
▶ But systematic data on FDI and for-
eign debt (FD) exist only for the pe-
riod 1902-1936
▶ FDI is everywhere above FD, and with
a widening trend since around the late
1910s
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 14 / 61
What did the Treaty Ports Bring to the Chinese Economy?
FDI and Foreign Debt
▶ Japan was the biggest investor (followed by the UK), with disproportionate
growth in FDI in the 1930s
▶ FDI from the other four countries were much smaller in magnitude
▶ Data is reticent on both geographic and sectoral distributions
▶ Bulk of FDI and FD likely flowed into the treaty ports and SIPs, since
these port-cities offered more privileges and had
.
better infrastructure for. .
. . . . . . . . . . . . . . . . . . .
facilitating trade and businesses . . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 15 / 61
What did the Treaty Ports Bring to the Chinese Economy?
FDI and Foreign Debt
▶ Japan was the biggest investor (followed by the UK), with disproportionate
growth in FDI in the 1930s
▶ FDI from the other four countries were much smaller in magnitude
▶ Data is reticent on both geographic and sectoral distributions
▶ Bulk of FDI and FD likely flowed into the treaty ports and SIPs, since
these port-cities offered more privileges and had
.
better infrastructure for. .
. . . . . . . . . . . . . . . . . . .
facilitating trade and businesses . . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 15 / 61
What did the Treaty Ports Bring to the Chinese Economy?
FDI and Foreign Debt
▶ Japan was the biggest investor (followed by the UK), with disproportionate
growth in FDI in the 1930s
▶ FDI from the other four countries were much smaller in magnitude
▶ Data is reticent on both geographic and sectoral distributions
▶ Bulk of FDI and FD likely flowed into the treaty ports and SIPs, since
these port-cities offered more privileges and had
.
better infrastructure for. .
. . . . . . . . . . . . . . . . . . .
facilitating trade and businesses . . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 15 / 61
What did the Treaty Ports Bring to the Chinese Economy?
FDI and Foreign Debt
▶ Japan was the biggest investor (followed by the UK), with disproportionate
growth in FDI in the 1930s
▶ FDI from the other four countries were much smaller in magnitude
▶ Data is reticent on both geographic and sectoral distributions
▶ Bulk of FDI and FD likely flowed into the treaty ports and SIPs, since
these port-cities offered more privileges and had
.
better infrastructure for. .
. . . . . . . . . . . . . . . . . . .
facilitating trade and businesses . . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 15 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Foreign firms increased slowly before 1890, but picked up pace after the
Treaty of Shimonoseki in 1895
▶ Foreign banks experienced two sharp spikes of growth: 1840-1890, 1900-
1920
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 16 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Foreign firms increased slowly before 1890, but picked up pace after the
Treaty of Shimonoseki in 1895
▶ Foreign banks experienced two sharp spikes of growth: 1840-1890, 1900-
1920
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 16 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Foreign firms and banks were primarily established within the treaty ports
(stronger protection for foreigners)
▶ Geographic coverage was slightly wider for firms
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 17 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Foreign firms and banks were primarily established within the treaty ports
(stronger protection for foreigners)
▶ Geographic coverage was slightly wider for firms
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 17 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
Panel A: Steam Engine Panel B: Machinery
▶ More firms in the treaty ports adopted this industrial revolution technol-
ogy, followed by SIPs
▶ Although firms in the SIPs managed to close the gap by 1880, it lasted for
just ten years
▶ Adoption of machinery showed similar patterns. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 18 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
Panel A: Steam Engine Panel B: Machinery
▶ More firms in the treaty ports adopted this industrial revolution technol-
ogy, followed by SIPs
▶ Although firms in the SIPs managed to close the gap by 1880, it lasted for
just ten years
▶ Adoption of machinery showed similar patterns. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 18 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
Panel A: Steam Engine Panel B: Machinery
▶ More firms in the treaty ports adopted this industrial revolution technol-
ogy, followed by SIPs
▶ Although firms in the SIPs managed to close the gap by 1880, it lasted for
just ten years
▶ Adoption of machinery showed similar patterns. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 18 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ However, the rate of firms adopting the steam engine and/or machinery
was actually similar across the three types of cities. TPs and SIPs showed
no significant advantage in this respect
Table 4: Adoption Rate of the Steam Engine and Machinery
Steam Engine Machinery
Treaty Self-initiated Non-port Treaty Self-initiated Non-port
Port Port Port Port
Adoption Rate 6.8% 7.6% 6.4% 17.9% 15.6% 16.1%
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 19 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Electrification was another industrial revolution technology
▶ This trend was accelerated from around the 1920s
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 20 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Electrification was another industrial revolution technology
▶ This trend was accelerated from around the 1920s
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 20 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Foreign power plants were mainly
concentrated within a small num-
ber of treaty ports such as Shang-
hai, Tianjin, Dalian, etc.
▶ Official power plants were mainly
located in lower Yangtze Delta
near the capital Nanjing
▶ A large number of private electric
power plants played an important
role
▶ Most were smaller in generating
capacity
▶ But they were built all over
China’s Earlier Electrical Plants in 1929
China (South and Central South
China—locations where public
efforts were visibly lacking)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 21 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Foreign power plants were mainly
concentrated within a small num-
ber of treaty ports such as Shang-
hai, Tianjin, Dalian, etc.
▶ Official power plants were mainly
located in lower Yangtze Delta
near the capital Nanjing
▶ A large number of private electric
power plants played an important
role
▶ Most were smaller in generating
capacity
▶ But they were built all over
China’s Earlier Electrical Plants in 1929
China (South and Central South
China—locations where public
efforts were visibly lacking)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 21 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Foreign power plants were mainly
concentrated within a small num-
ber of treaty ports such as Shang-
hai, Tianjin, Dalian, etc.
▶ Official power plants were mainly
located in lower Yangtze Delta
near the capital Nanjing
▶ A large number of private electric
power plants played an important
role
▶ Most were smaller in generating
capacity
▶ But they were built all over
China’s Earlier Electrical Plants in 1929
China (South and Central South
China—locations where public
efforts were visibly lacking)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 21 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Foreign power plants were mainly
concentrated within a small num-
ber of treaty ports such as Shang-
hai, Tianjin, Dalian, etc.
▶ Official power plants were mainly
located in lower Yangtze Delta
near the capital Nanjing
▶ A large number of private electric
power plants played an important
role
▶ Most were smaller in generating
capacity
▶ But they were built all over
China’s Earlier Electrical Plants in 1929
China (South and Central South
China—locations where public
efforts were visibly lacking)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 21 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Foreign Firms and Banks
▶ Foreign power plants were mainly
concentrated within a small num-
ber of treaty ports such as Shang-
hai, Tianjin, Dalian, etc.
▶ Official power plants were mainly
located in lower Yangtze Delta
near the capital Nanjing
▶ A large number of private electric
power plants played an important
role
▶ Most were smaller in generating
capacity
▶ But they were built all over
China’s Earlier Electrical Plants in 1929
China (South and Central South
China—locations where public
efforts were visibly lacking)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 21 / 61
What did the Treaty Ports Bring to the Chinese Economy?
Persistence Effect
▶ Jia (2014): treaty-port prefectures experienced faster economic development in
the wake of China’s “open door” policy in the 1980s using population and GDP
growth as gauge (such effect was “shut off” during the communist period)
Table 5: Long-run Effects of Treaty Ports and Self-initiated Ports
(1) (2) (3) (4) (5) (6) (7) (8)
GDP Fiscal Income Industrial Output GDP Per Capita
(log) (log) (log) (log)
Treaty Ports 0.780*** 0.552*** 1.008*** 0.730*** 0.796*** 0.609*** 0.486*** 0.417***
(0.158) (0.102) (0.185) (0.142) (0.206) (0.146) (0.094) (0.089)
Self-initiated Ports 0.580*** 0.277** 0.712*** 0.362** 0.697*** 0.282* 0.292*** 0.211**
(0.143) (0.109) (0.174) (0.153) (0.196) (0.155) (0.095) (0.098)
Population (log) 0.761*** 0.693*** 0.718***
(0.059) (0.088) (0.090)
Geographic controls Yes Yes Yes Yes
Observations 287 250 287 250 287 250 286 250
Adjusted R2 0.148 0.598 0.173 0.491 0.093 0.454 0.116 0.147
Robust S.E. Yes Yes Yes Yes Yes Yes Yes Yes
Notes: Standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01. Geographic controls include longitude,
latitude, distance to main river and distance to coast.
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 22 / 61
“Self-strengthening” Movement
▶ Humiliation led the Qing to brutal awareness of its shortcomings, hence
the “Self-strengthening” Movement or 自强运动 (c. 1861-1895)
▶ A group of officials and scholars felt the need to adopt Western technologies,
especially military technologies (steamships and weapons) (Kuo and Lin,
1978; Spence, 1990) Munition Factories
▶ Funded by local taxes or customs income, many munitions factories (arse-
nal) and shipyards were built and their products distributed to the army
▶ China Merchant Steamship Navigation Company (1872)
▶ Coal mines to provide fuel for an expanding navy of steamships (1877)
▶ Telegraph (1880s)
▶ But these enterprises were still run by the government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 23 / 61
“Self-strengthening” Movement
▶ Humiliation led the Qing to brutal awareness of its shortcomings, hence
the “Self-strengthening” Movement or 自强运动 (c. 1861-1895)
▶ A group of officials and scholars felt the need to adopt Western technologies,
especially military technologies (steamships and weapons) (Kuo and Lin,
1978; Spence, 1990) Munition Factories
▶ Funded by local taxes or customs income, many munitions factories (arse-
nal) and shipyards were built and their products distributed to the army
▶ China Merchant Steamship Navigation Company (1872)
▶ Coal mines to provide fuel for an expanding navy of steamships (1877)
▶ Telegraph (1880s)
▶ But these enterprises were still run by the government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 23 / 61
“Self-strengthening” Movement
▶ Humiliation led the Qing to brutal awareness of its shortcomings, hence
the “Self-strengthening” Movement or 自强运动 (c. 1861-1895)
▶ A group of officials and scholars felt the need to adopt Western technologies,
especially military technologies (steamships and weapons) (Kuo and Lin,
1978; Spence, 1990) Munition Factories
▶ Funded by local taxes or customs income, many munitions factories (arse-
nal) and shipyards were built and their products distributed to the army
▶ China Merchant Steamship Navigation Company (1872)
▶ Coal mines to provide fuel for an expanding navy of steamships (1877)
▶ Telegraph (1880s)
▶ But these enterprises were still run by the government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 23 / 61
“Self-strengthening” Movement
▶ Humiliation led the Qing to brutal awareness of its shortcomings, hence
the “Self-strengthening” Movement or 自强运动 (c. 1861-1895)
▶ A group of officials and scholars felt the need to adopt Western technologies,
especially military technologies (steamships and weapons) (Kuo and Lin,
1978; Spence, 1990) Munition Factories
▶ Funded by local taxes or customs income, many munitions factories (arse-
nal) and shipyards were built and their products distributed to the army
▶ China Merchant Steamship Navigation Company (1872)
▶ Coal mines to provide fuel for an expanding navy of steamships (1877)
▶ Telegraph (1880s)
▶ But these enterprises were still run by the government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 23 / 61
“Self-strengthening” Movement
▶ Humiliation led the Qing to brutal awareness of its shortcomings, hence
the “Self-strengthening” Movement or 自强运动 (c. 1861-1895)
▶ A group of officials and scholars felt the need to adopt Western technologies,
especially military technologies (steamships and weapons) (Kuo and Lin,
1978; Spence, 1990) Munition Factories
▶ Funded by local taxes or customs income, many munitions factories (arse-
nal) and shipyards were built and their products distributed to the army
▶ China Merchant Steamship Navigation Company (1872)
▶ Coal mines to provide fuel for an expanding navy of steamships (1877)
▶ Telegraph (1880s)
▶ But these enterprises were still run by the government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 23 / 61
“Self-strengthening” Movement
▶ Humiliation led the Qing to brutal awareness of its shortcomings, hence
the “Self-strengthening” Movement or 自强运动 (c. 1861-1895)
▶ A group of officials and scholars felt the need to adopt Western technologies,
especially military technologies (steamships and weapons) (Kuo and Lin,
1978; Spence, 1990) Munition Factories
▶ Funded by local taxes or customs income, many munitions factories (arse-
nal) and shipyards were built and their products distributed to the army
▶ China Merchant Steamship Navigation Company (1872)
▶ Coal mines to provide fuel for an expanding navy of steamships (1877)
▶ Telegraph (1880s)
▶ But these enterprises were still run by the government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 23 / 61
“Self-strengthening” Movement
▶ Humiliation led the Qing to brutal awareness of its shortcomings, hence
the “Self-strengthening” Movement or 自强运动 (c. 1861-1895)
▶ A group of officials and scholars felt the need to adopt Western technologies,
especially military technologies (steamships and weapons) (Kuo and Lin,
1978; Spence, 1990) Munition Factories
▶ Funded by local taxes or customs income, many munitions factories (arse-
nal) and shipyards were built and their products distributed to the army
▶ China Merchant Steamship Navigation Company (1872)
▶ Coal mines to provide fuel for an expanding navy of steamships (1877)
▶ Telegraph (1880s)
▶ But these enterprises were still run by the government
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 23 / 61
Sino-Japanese War (c. 1894-95)
▶ China lost to Japan despite having built up allegedly the strongest navy
in Asia (Beiyang Fleet)
▶ Defeat by the Japanese was “unthinkable” because Japan was a small
neighboring country and a humble student of Chinese culture
▶ Mere adoption of foreign technologies was not sufficient for forging a strong
empire
▶ To strengthen itself, China would need to undertake a more fundamental
reform similar to the Meiji Reform in Japan
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 24 / 61
Sino-Japanese War (c. 1894-95)
▶ China lost to Japan despite having built up allegedly the strongest navy
in Asia (Beiyang Fleet)
▶ Defeat by the Japanese was “unthinkable” because Japan was a small
neighboring country and a humble student of Chinese culture
▶ Mere adoption of foreign technologies was not sufficient for forging a strong
empire
▶ To strengthen itself, China would need to undertake a more fundamental
reform similar to the Meiji Reform in Japan
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 24 / 61
Sino-Japanese War (c. 1894-95)
▶ China lost to Japan despite having built up allegedly the strongest navy
in Asia (Beiyang Fleet)
▶ Defeat by the Japanese was “unthinkable” because Japan was a small
neighboring country and a humble student of Chinese culture
▶ Mere adoption of foreign technologies was not sufficient for forging a strong
empire
▶ To strengthen itself, China would need to undertake a more fundamental
reform similar to the Meiji Reform in Japan
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 24 / 61
Sino-Japanese War (c. 1894-95)
▶ China lost to Japan despite having built up allegedly the strongest navy
in Asia (Beiyang Fleet)
▶ Defeat by the Japanese was “unthinkable” because Japan was a small
neighboring country and a humble student of Chinese culture
▶ Mere adoption of foreign technologies was not sufficient for forging a strong
empire
▶ To strengthen itself, China would need to undertake a more fundamental
reform similar to the Meiji Reform in Japan
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 24 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ Escalating demand for more ports to be
opened for trade and businesses after the
Treaty of Shimonoseki (1895)
▶ “Self-initiated ports” a conscious response
to this demand
▶ Opening up more treaty ports would cede
further concessions to the foreign powers
▶ SIPs allowed the Chinese to preserve the
country’s sovereign rights
▶ SIPs represented a deepening of the “self-
strengthening” movement to industrial-
ize China beyond the government’s effort
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 25 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ Escalating demand for more ports to be
opened for trade and businesses after the
Treaty of Shimonoseki (1895)
▶ “Self-initiated ports” a conscious response
to this demand
▶ Opening up more treaty ports would cede
further concessions to the foreign powers
▶ SIPs allowed the Chinese to preserve the
country’s sovereign rights
▶ SIPs represented a deepening of the “self-
strengthening” movement to industrial-
ize China beyond the government’s effort
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 25 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ Escalating demand for more ports to be
opened for trade and businesses after the
Treaty of Shimonoseki (1895)
▶ “Self-initiated ports” a conscious response
to this demand
▶ Opening up more treaty ports would cede
further concessions to the foreign powers
▶ SIPs allowed the Chinese to preserve the
country’s sovereign rights
▶ SIPs represented a deepening of the “self-
strengthening” movement to industrial-
ize China beyond the government’s effort
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 25 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ Escalating demand for more ports to be
opened for trade and businesses after the
Treaty of Shimonoseki (1895)
▶ “Self-initiated ports” a conscious response
to this demand
▶ Opening up more treaty ports would cede
further concessions to the foreign powers
▶ SIPs allowed the Chinese to preserve the
country’s sovereign rights
▶ SIPs represented a deepening of the “self-
strengthening” movement to industrial-
ize China beyond the government’s effort
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 25 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ One of the earliest SIPs, Yuezhou, located
along the Yangtze River, was proposed by
the reformers
▶ Shen baozhen (Governor of Hunan)
▶ Zhang Zhidong (Governor-general of
Hubei and Hunan)
▶ Regulations stipulated that:
▶ Critical administrative rights remain in
the Chinese government
▶ Levying of taxes, building infrastruc-
ture, and providing public security
▶ No concessions were to be allowed
▶ Land lease in perpetuity was forbidden
▶ Tenancy limited to 30 years
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 26 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ One of the earliest SIPs, Yuezhou, located
along the Yangtze River, was proposed by
the reformers
▶ Shen baozhen (Governor of Hunan)
▶ Zhang Zhidong (Governor-general of
Hubei and Hunan)
▶ Regulations stipulated that:
▶ Critical administrative rights remain in
the Chinese government
▶ Levying of taxes, building infrastruc-
ture, and providing public security
▶ No concessions were to be allowed
▶ Land lease in perpetuity was forbidden
▶ Tenancy limited to 30 years
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 26 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ One of the earliest SIPs, Yuezhou, located
along the Yangtze River, was proposed by
the reformers
▶ Shen baozhen (Governor of Hunan)
▶ Zhang Zhidong (Governor-general of
Hubei and Hunan)
▶ Regulations stipulated that:
▶ Critical administrative rights remain in
the Chinese government
▶ Levying of taxes, building infrastruc-
ture, and providing public security
▶ No concessions were to be allowed
▶ Land lease in perpetuity was forbidden
▶ Tenancy limited to 30 years
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 26 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ One of the earliest SIPs, Yuezhou, located
along the Yangtze River, was proposed by
the reformers
▶ Shen baozhen (Governor of Hunan)
▶ Zhang Zhidong (Governor-general of
Hubei and Hunan)
▶ Regulations stipulated that:
▶ Critical administrative rights remain in
the Chinese government
▶ Levying of taxes, building infrastruc-
ture, and providing public security
▶ No concessions were to be allowed
▶ Land lease in perpetuity was forbidden
▶ Tenancy limited to 30 years
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 26 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ One of the earliest SIPs, Yuezhou, located
along the Yangtze River, was proposed by
the reformers
▶ Shen baozhen (Governor of Hunan)
▶ Zhang Zhidong (Governor-general of
Hubei and Hunan)
▶ Regulations stipulated that:
▶ Critical administrative rights remain in
the Chinese government
▶ Levying of taxes, building infrastruc-
ture, and providing public security
▶ No concessions were to be allowed
▶ Land lease in perpetuity was forbidden
▶ Tenancy limited to 30 years
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 26 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ One of the earliest SIPs, Yuezhou, located
along the Yangtze River, was proposed by
the reformers
▶ Shen baozhen (Governor of Hunan)
▶ Zhang Zhidong (Governor-general of
Hubei and Hunan)
▶ Regulations stipulated that:
▶ Critical administrative rights remain in
the Chinese government
▶ Levying of taxes, building infrastruc-
ture, and providing public security
▶ No concessions were to be allowed
▶ Land lease in perpetuity was forbidden
▶ Tenancy limited to 30 years
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 26 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ One of the earliest SIPs, Yuezhou, located
along the Yangtze River, was proposed by
the reformers
▶ Shen baozhen (Governor of Hunan)
▶ Zhang Zhidong (Governor-general of
Hubei and Hunan)
▶ Regulations stipulated that:
▶ Critical administrative rights remain in
the Chinese government
▶ Levying of taxes, building infrastruc-
ture, and providing public security
▶ No concessions were to be allowed
▶ Land lease in perpetuity was forbidden
▶ Tenancy limited to 30 years
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 26 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ One of the earliest SIPs, Yuezhou, located
along the Yangtze River, was proposed by
the reformers
▶ Shen baozhen (Governor of Hunan)
▶ Zhang Zhidong (Governor-general of
Hubei and Hunan)
▶ Regulations stipulated that:
▶ Critical administrative rights remain in
the Chinese government
▶ Levying of taxes, building infrastruc-
ture, and providing public security
▶ No concessions were to be allowed
▶ Land lease in perpetuity was forbidden
▶ Tenancy limited to 30 years
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 26 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ One of the earliest SIPs, Yuezhou, located
along the Yangtze River, was proposed by
the reformers
▶ Shen baozhen (Governor of Hunan)
▶ Zhang Zhidong (Governor-general of
Hubei and Hunan)
▶ Regulations stipulated that:
▶ Critical administrative rights remain in
the Chinese government
▶ Levying of taxes, building infrastruc-
ture, and providing public security
▶ No concessions were to be allowed
▶ Land lease in perpetuity was forbidden
▶ Tenancy limited to 30 years
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 26 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ By 1924, a total of 35 SIPs were
established:
▶ 17 were for the purpose of avoid-
ing ceding concessions to the for-
eign powers
▶ Another 18 as ”trade hubs” to
compete with the treaty ports
▶ Many were chosen for their
proximity to the railway
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 27 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ By 1924, a total of 35 SIPs were
established:
▶ 17 were for the purpose of avoid-
ing ceding concessions to the for-
eign powers
▶ Another 18 as ”trade hubs” to
compete with the treaty ports
▶ Many were chosen for their
proximity to the railway
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 27 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ By 1924, a total of 35 SIPs were
established:
▶ 17 were for the purpose of avoid-
ing ceding concessions to the for-
eign powers
▶ Another 18 as ”trade hubs” to
compete with the treaty ports
▶ Many were chosen for their
proximity to the railway
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 27 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ By 1924, a total of 35 SIPs were
established:
▶ 17 were for the purpose of avoid-
ing ceding concessions to the for-
eign powers
▶ Another 18 as ”trade hubs” to
compete with the treaty ports
▶ Many were chosen for their
proximity to the railway
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 27 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ Were the SIPs set up strategically to capture the benefits of trade?
▶ If so they should be in close proximity with each other?
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 28 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ Were the SIPs set up strategically to capture the benefits of trade?
▶ If so they should be in close proximity with each other?
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 28 / 61
Economic Reforms
Locations of Treaty Ports and Self-initiated Ports
▶ SIPs were set up where the TPs were located (columns 1-2)
Table 1: Locations of Self-initiated Ports
(1) (2) (3) (4)
Self-initiated Ports
Treaty Ports 1.409*** 0.913**
(0.411) (0.455)
Railway 0.599*** 0.652*** 0.631***
(0.107) (0.105) (0.133)
Distance to Treaty Port
0 kilometer 1.897*** 1.691**
(0.643) (0.739)
1-50 kilometers 1.739** 1.442*
(0.718) (0.800)
50-100 kilometers 2.183*** 2.089***
(0.734) (0.765)
100-200 kilometers 1.417* 1.378*
(0.747) (0.822)
Distance to Main River (log) -0.056
(0.040)
Distance to Coast (log) -0.047
(0.049)
Distance to Provincial Capital (log) 0.001
(0.042)
Observations 377 377 377 367
Robust S.E. Yes Yes Yes Yes
Note: These are logistic regressions. Robust standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01.
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 29 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ Other catchment areas shorter than 200 km. (columns 3-4)
Table 1: Locations of Self-initiated Ports
(1) (2) (3) (4)
Self-initiated Ports
Treaty Ports 1.409*** 0.913**
(0.411) (0.455)
Railway 0.599*** 0.652*** 0.631***
(0.107) (0.105) (0.133)
Distance to Treaty Port
0 kilometer 1.897*** 1.691**
(0.643) (0.739)
1-50 kilometers 1.739** 1.442*
(0.718) (0.800)
50-100 kilometers 2.183*** 2.089***
(0.734) (0.765)
100-200 kilometers 1.417* 1.378*
(0.747) (0.822)
Distance to Main River (log) -0.056
(0.040)
Distance to Coast (log) -0.047
(0.049)
Distance to Provincial Capital (log) 0.001
(0.042)
Observations 377 377 377 367
Robust S.E. Yes Yes Yes Yes
Note: These are logistic regressions. Robust standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01.
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 30 / 61
Economic Reforms
Economic Reforms
Self-initiated Ports
▶ Prefectures with railway (columns 2-4)
Table 1: Locations of Self-initiated Ports
(1) (2) (3) (4)
Self-initiated Ports
Treaty Ports 1.409*** 0.913**
(0.411) (0.455)
Railway 0.599*** 0.652*** 0.631***
(0.107) (0.105) (0.133)
Distance to Treaty Port
0 kilometer 1.897*** 1.691**
(0.643) (0.739)
1-50 kilometers 1.739** 1.442*
(0.718) (0.800)
50-100 kilometers 2.183*** 2.089***
(0.734) (0.765)
100-200 kilometers 1.417* 1.378*
(0.747) (0.822)
Distance to Main River (log) -0.056
(0.040)
Distance to Coast (log) -0.047
(0.049)
Distance to Provincial Capital (log) 0.001
(0.042)
Observations 377 377 377 367
Robust S.E. Yes Yes Yes Yes
Note: These are logistic regressions. Robust standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01.
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 31 / 61
Economic Reforms
Economic Reforms
Domestic Firms and Banks(Time Trend)
▶ Domestic firms and banks experienced rapid growth only after the 1900s,
presumably after the Treaty of Shimonoseki
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 32 / 61
Economic Reforms
Economic Reforms
Domestic Firms and Banks(Spatial)
▶ Domestic firms and banks were located in close proximity (if not directly
in) both TPs and SIPs
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 33 / 61
Economic Reforms
Economic Reforms
Domestic Firms and Banks(Empirical Regression)
Table2: Impact of Foreign Firms and Banks on Domestic Modern Firms and Banks
(1) (2) (3) (4) (5) (6)
Full Sample Treaty Ports Sample
Domestic Firms Domestic Banks Domestic Domestic
Firms Banks
(log) (log) (log) (log)
Treaty Ports 0.378*** 0.176* 0.105*** 0.083**
(0.090) (0.090) (0.032) (0.034)
Foreign Firms (log) 0.748*** 0.667***
(0.068) (0.112)
Foreign Banks (log) 0.181*** 0.105***
(0.057) (0.039)
Prefecture Fixed Effects Yes Yes Yes Yes Yes Yes
Year Fixed Effects Yes Yes Yes Yes Yes Yes
Provincial specific time trend Yes Yes Yes Yes Yes Yes
Observations 6786 6786 6786 6786 936 936
Adjusted R2 0.478 0.603 0.2 0.208 0.76 0.324
Note: Standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01
▶ Western impact as proxied by treaty ports has a significant effect on Do-
mestic firms and banks (columns 1-4) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 34 / 61
Economic Reforms
Economic Reforms
Domestic Firms and Banks(Empirical Regression)
Table2: Impact of Foreign Firms and Banks on Domestic Modern Firms and Banks
(1) (2) (3) (4) (5) (6)
Full Sample Treaty Ports Sample
Domestic Firms Domestic Banks Domestic Domestic
Firms Banks
(log) (log) (log) (log)
Treaty Ports 0.378*** 0.176* 0.105*** 0.083**
(0.090) (0.090) (0.032) (0.034)
Foreign Firms (log) 0.748*** 0.667***
(0.068) (0.112)
Foreign Banks (log) 0.181*** 0.105***
(0.057) (0.039)
Prefecture Fixed Effects Yes Yes Yes Yes Yes Yes
Year Fixed Effects Yes Yes Yes Yes Yes Yes
Provincial specific time trend Yes Yes Yes Yes Yes Yes
Observations 6786 6786 6786 6786 936 936
Adjusted R2 0.478 0.603 0.2 0.208 0.76 0.324
Note: Standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01
▶ Foreign firms and banks have had a “demonstration effect” on the Domestic
institutions. (columns 2 and 4) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 35 / 61
Economic Reforms
Economic Reforms
Domestic Firms and Banks(Empirical Regression)
Table2: Impact of Foreign Firms and Banks on Domestic Modern Firms and Banks
(1) (2) (3) (4) (5) (6)
Full Sample Treaty Ports Sample
Domestic Firms Domestic Banks Domestic Domestic
Firms Banks
(log) (log) (log) (log)
Treaty Ports 0.378*** 0.176* 0.105*** 0.083**
(0.090) (0.090) (0.032) (0.034)
Foreign Firms (log) 0.748*** 0.667***
(0.068) (0.112)
Foreign Banks (log) 0.181*** 0.105***
(0.057) (0.039)
Prefecture Fixed Effects Yes Yes Yes Yes Yes Yes
Year Fixed Effects Yes Yes Yes Yes Yes Yes
Provincial specific time trend Yes Yes Yes Yes Yes Yes
Observations 6786 6786 6786 6786 936 936
Adjusted R2 0.478 0.603 0.2 0.208 0.76 0.324
Note: Standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01
▶ Using only the sample of the treaty ports for testing similarly confirms the
salient finding (columns 5 and 6) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 36 / 61
Educational Reforms
Educational Reforms
▶ 1904 issued the New School Regulations (奏定学堂章程) and established
a new system of education (癸卯学制)
▶ 1905 abolished the civil exam and established the Ministry of Education
(学部)
▶ 1906 accelerated the establishment of new primary and secondary schools
▶ 1907 conducted the First Education Survey
▶ Secondary schools were located where the senior primary schools were
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 37 / 61
Educational Reforms
Educational Reforms
▶ 1904 issued the New School Regulations (奏定学堂章程) and established
a new system of education (癸卯学制)
▶ 1905 abolished the civil exam and established the Ministry of Education
(学部)
▶ 1906 accelerated the establishment of new primary and secondary schools
▶ 1907 conducted the First Education Survey
▶ Secondary schools were located where the senior primary schools were
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 37 / 61
Educational Reforms
Educational Reforms
▶ 1904 issued the New School Regulations (奏定学堂章程) and established
a new system of education (癸卯学制)
▶ 1905 abolished the civil exam and established the Ministry of Education
(学部)
▶ 1906 accelerated the establishment of new primary and secondary schools
▶ 1907 conducted the First Education Survey
▶ Secondary schools were located where the senior primary schools were
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 37 / 61
Educational Reforms
Educational Reforms
▶ 1904 issued the New School Regulations (奏定学堂章程) and established
a new system of education (癸卯学制)
▶ 1905 abolished the civil exam and established the Ministry of Education
(学部)
▶ 1906 accelerated the establishment of new primary and secondary schools
▶ 1907 conducted the First Education Survey
▶ Secondary schools were located where the senior primary schools were
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 37 / 61
Educational Reforms
Educational Reforms
▶ 1904 issued the New School Regulations (奏定学堂章程) and established
a new system of education (癸卯学制)
▶ 1905 abolished the civil exam and established the Ministry of Education
(学部)
▶ 1906 accelerated the establishment of new primary and secondary schools
▶ 1907 conducted the First Education Survey
▶ Secondary schools were located where the senior primary schools were
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 37 / 61
Educational Reforms
Educational Reforms
▶ Traditional curriculum in China (the Civil Exam):
▶ Confucian Classics
▶ Four Books and the Five Classics
▶ Emphasis on moral and ethical issues rather than professional skills and
useful knowledge
▶ Achievements: Shengyuan (quota assigned to counties and prefectures) −→
Juren (quota assigned to provinces) −→ Jinshi (national exam)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 38 / 61
Educational Reforms
Educational Reforms
▶ Traditional curriculum in China (the Civil Exam):
▶ Confucian Classics
▶ Four Books and the Five Classics
▶ Emphasis on moral and ethical issues rather than professional skills and
useful knowledge
▶ Achievements: Shengyuan (quota assigned to counties and prefectures) −→
Juren (quota assigned to provinces) −→ Jinshi (national exam)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 38 / 61
Educational Reforms
Educational Reforms
▶ Traditional curriculum in China (the Civil Exam):
▶ Confucian Classics
▶ Four Books and the Five Classics
▶ Emphasis on moral and ethical issues rather than professional skills and
useful knowledge
▶ Achievements: Shengyuan (quota assigned to counties and prefectures) −→
Juren (quota assigned to provinces) −→ Jinshi (national exam)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 38 / 61
Educational Reforms
Educational Reforms
▶ Traditional curriculum in China (the Civil Exam):
▶ Confucian Classics
▶ Four Books and the Five Classics
▶ Emphasis on moral and ethical issues rather than professional skills and
useful knowledge
▶ Achievements: Shengyuan (quota assigned to counties and prefectures) −→
Juren (quota assigned to provinces) −→ Jinshi (national exam)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 38 / 61
Educational Reforms
Educational Reforms
▶ Traditional curriculum in China (the Civil Exam):
▶ Confucian Classics
▶ Four Books and the Five Classics
▶ Emphasis on moral and ethical issues rather than professional skills and
useful knowledge
▶ Achievements: Shengyuan (quota assigned to counties and prefectures) −→
Juren (quota assigned to provinces) −→ Jinshi (national exam)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 38 / 61
Educational Reforms
Educational Reforms
▶ Secondary school Primary Schools
▶ Missionary primary schools produced
graduates who later became teachers in
government primary schools
▶ Government schools also adopted text-
books used in missionary schools
▶ Many famous missionaries were involved
in drafting the curriculum (e.g., Timothy
Richard in Shanxi)
▶ By 1922, missionary and government pri-
mary schools showed a positive correla-
tion in their locations
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 39 / 61
Educational Reforms
Educational Reforms
▶ Secondary school Primary Schools
▶ Missionary primary schools produced
graduates who later became teachers in
government primary schools
▶ Government schools also adopted text-
books used in missionary schools
▶ Many famous missionaries were involved
in drafting the curriculum (e.g., Timothy
Richard in Shanxi)
▶ By 1922, missionary and government pri-
mary schools showed a positive correla-
tion in their locations
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 39 / 61
Educational Reforms
Educational Reforms
▶ Secondary school Primary Schools
▶ Missionary primary schools produced
graduates who later became teachers in
government primary schools
▶ Government schools also adopted text-
books used in missionary schools
▶ Many famous missionaries were involved
in drafting the curriculum (e.g., Timothy
Richard in Shanxi)
▶ By 1922, missionary and government pri-
mary schools showed a positive correla-
tion in their locations
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 39 / 61
Educational Reforms
Educational Reforms
▶ Secondary school Primary Schools
▶ Missionary primary schools produced
graduates who later became teachers in
government primary schools
▶ Government schools also adopted text-
books used in missionary schools
▶ Many famous missionaries were involved
in drafting the curriculum (e.g., Timothy
Richard in Shanxi)
▶ By 1922, missionary and government pri-
mary schools showed a positive correla-
tion in their locations
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 39 / 61
Educational Reforms
Educational Reforms
New Primary and Secondary Schools in 1907
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 40 / 61
Educational Reforms
Protestantism and Urbanization
Specification: γ = ρP + Wi β + ε
▶ Significant and positive relationship between Protestantism and economic
prosperity
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 41 / 61
Educational Reforms
Protestantism and Urbanization
▶ Protestantism remains significant after controlling for political center and
geographic factors . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 42 / 61
Educational Reforms
Protestantism and Urbanization
▶ Still significant as extending control to include differences in initial eco-
nomic conditions .
. .
. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
. .
. . .
.
Kung (2022) Econ 2264 January 18 43 / 61
Educational Reforms
Protestantism and Urbanization
▶ The same is true with the inclusion of the two measures of Western eco-
nomic influences .
. .
. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
. .
. . .
.
Kung (2022) Econ 2264 January 18 44 / 61
Educational Reforms
Protestantism and Urbanization
▶ Protestantism remains significant in the full model
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 45 / 61
Educational Reforms
Channel of Protestantism
▶ Protestantism is significantly correlated with urbanization
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 46 / 61
Educational Reforms
Channel of Protestantism
▶ Protestantism loses its significance after controlling for primary school
enrolment
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 47 / 61
Educational Reforms
Channel of Protestantism
▶ Protestantism loses its significance after controlling for all knowledge dif-
fusion activities
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 48 / 61
Educational Reforms
Channel of Protestantism
▶ Middle schools and hospitals are more significant determinants of economic
prosperity
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 49 / 61
Educational Reforms
Channel of Protestantism
▶ Bible schools, which are not correlated with the diffusion of“useful”West-
ern knowledge, have no significant effect on economic prosperity
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 50 / 61
Educational Reforms
Educational Reforms
▶ Curriculum in missionary primary schools:
▶ Teaching of the Bible
▶ Chinese Classics (and language) remained
▶ Introduction of new knowledge
▶ Math/Physics/Painting and Mapping/Geography
Table 6: A Comparison of Curricula in the 1900s
Missionary New School Curriculum
Curriculum (Since 1876) (1904)
Bible Yes
Ideology and Classics Yes
Chinese Classics Yes Yes
Chinese Characters Yes Yes
History Yes Yes
Geography Yes Yes
Mathematics Yes Yes
Physical Education Yes
Physics Yes Yes
Music Yes
Painting and Mapping Yes Yes
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 51 / 61
Educational Reforms
Educational Reforms
▶ Curriculum in missionary primary schools:
▶ Teaching of the Bible
▶ Chinese Classics (and language) remained
▶ Introduction of new knowledge
▶ Math/Physics/Painting and Mapping/Geography
Table 6: A Comparison of Curricula in the 1900s
Missionary New School Curriculum
Curriculum (Since 1876) (1904)
Bible Yes
Ideology and Classics Yes
Chinese Classics Yes Yes
Chinese Characters Yes Yes
History Yes Yes
Geography Yes Yes
Mathematics Yes Yes
Physical Education Yes
Physics Yes Yes
Music Yes
Painting and Mapping Yes Yes
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 51 / 61
Educational Reforms
Educational Reforms
▶ Curriculum in missionary primary schools:
▶ Teaching of the Bible
▶ Chinese Classics (and language) remained
▶ Introduction of new knowledge
▶ Math/Physics/Painting and Mapping/Geography
Table 6: A Comparison of Curricula in the 1900s
Missionary New School Curriculum
Curriculum (Since 1876) (1904)
Bible Yes
Ideology and Classics Yes
Chinese Classics Yes Yes
Chinese Characters Yes Yes
History Yes Yes
Geography Yes Yes
Mathematics Yes Yes
Physical Education Yes
Physics Yes Yes
Music Yes
Painting and Mapping Yes Yes
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 51 / 61
Educational Reforms
Educational Reforms
▶ Curriculum in missionary primary schools:
▶ Teaching of the Bible
▶ Chinese Classics (and language) remained
▶ Introduction of new knowledge
▶ Math/Physics/Painting and Mapping/Geography
Table 6: A Comparison of Curricula in the 1900s
Missionary New School Curriculum
Curriculum (Since 1876) (1904)
Bible Yes
Ideology and Classics Yes
Chinese Classics Yes Yes
Chinese Characters Yes Yes
History Yes Yes
Geography Yes Yes
Mathematics Yes Yes
Physical Education Yes
Physics Yes Yes
Music Yes
Painting and Mapping Yes Yes
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 51 / 61
Educational Reforms
Educational Reforms
▶ Curriculum in government primary schools:
▶ Similar to the missionary primary schools
▶ Biblical knowledge was however not taught according to government regu-
lation
▶ Ideology and Morality were compulsory, which taught students to follow
the Chinese tradition (e.g., in obeying the emperor)
Table 6: A Comparison of Curricula in the 1900s
Missionary New School Curriculum
Curriculum (Since 1876) (1904)
Bible Yes
Ideology and Classics Yes
Chinese Classics Yes Yes
Chinese Characters Yes Yes
History Yes Yes
Geography Yes Yes
Mathematics Yes Yes
Physical Education Yes
Physics Yes Yes
Music Yes
Painting and Mapping Yes Yes
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 52 / 61
Educational Reforms
Educational Reforms
▶ Curriculum in government primary schools:
▶ Similar to the missionary primary schools
▶ Biblical knowledge was however not taught according to government regu-
lation
▶ Ideology and Morality were compulsory, which taught students to follow
the Chinese tradition (e.g., in obeying the emperor)
Table 6: A Comparison of Curricula in the 1900s
Missionary New School Curriculum
Curriculum (Since 1876) (1904)
Bible Yes
Ideology and Classics Yes
Chinese Classics Yes Yes
Chinese Characters Yes Yes
History Yes Yes
Geography Yes Yes
Mathematics Yes Yes
Physical Education Yes
Physics Yes Yes
Music Yes
Painting and Mapping Yes Yes
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 52 / 61
Educational Reforms
Educational Reforms
▶ Curriculum in government primary schools:
▶ Similar to the missionary primary schools
▶ Biblical knowledge was however not taught according to government regu-
lation
▶ Ideology and Morality were compulsory, which taught students to follow
the Chinese tradition (e.g., in obeying the emperor)
Table 6: A Comparison of Curricula in the 1900s
Missionary New School Curriculum
Curriculum (Since 1876) (1904)
Bible Yes
Ideology and Classics Yes
Chinese Classics Yes Yes
Chinese Characters Yes Yes
History Yes Yes
Geography Yes Yes
Mathematics Yes Yes
Physical Education Yes
Physics Yes Yes
Music Yes
Painting and Mapping Yes Yes
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 52 / 61
Educational Reforms
Educational Reforms
University
▶ Modern university was introduced into China after 1860
▶ A small number of military colleges and language colleges were established
after 1860
▶ Number increased sharply after 1905 when the civil exam was abolished
▶ Increased further after the Republic of China
▶ By 1937, more than 200 modern colleges and universities were established
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 53 / 61
Educational Reforms
Educational Reforms
University
▶ Modern university was introduced into China after 1860
▶ A small number of military colleges and language colleges were established
after 1860
▶ Number increased sharply after 1905 when the civil exam was abolished
▶ Increased further after the Republic of China
▶ By 1937, more than 200 modern colleges and universities were established
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 53 / 61
Educational Reforms
Educational Reforms
University
▶ Modern university was introduced into China after 1860
▶ A small number of military colleges and language colleges were established
after 1860
▶ Number increased sharply after 1905 when the civil exam was abolished
▶ Increased further after the Republic of China
▶ By 1937, more than 200 modern colleges and universities were established
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 53 / 61
Educational Reforms
Educational Reforms
University
▶ Modern university was introduced into China after 1860
▶ A small number of military colleges and language colleges were established
after 1860
▶ Number increased sharply after 1905 when the civil exam was abolished
▶ Increased further after the Republic of China
▶ By 1937, more than 200 modern colleges and universities were established
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 53 / 61
Educational Reforms
Educational Reforms
University
▶ Modern university was introduced into China after 1860
▶ A small number of military colleges and language colleges were established
after 1860
▶ Number increased sharply after 1905 when the civil exam was abolished
▶ Increased further after the Republic of China
▶ By 1937, more than 200 modern colleges and universities were established
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 53 / 61
Educational Reforms
Educational Reforms
University
▶ National university (founded by the government)
▶ Majority (around 50 percent by the 1930s). Experienced rapid growth since
1901 as a result of the late Qing education system reform
▶ Private university
▶ Grew rapidly after the Republic of China (around 36 percent)
▶ Missionary university
▶ Stable growth (around 13 percent) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 54 / 61
Educational Reforms
Educational Reforms
University
▶ National university (founded by the government)
▶ Majority (around 50 percent by the 1930s). Experienced rapid growth since
1901 as a result of the late Qing education system reform
▶ Private university
▶ Grew rapidly after the Republic of China (around 36 percent)
▶ Missionary university
▶ Stable growth (around 13 percent) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 54 / 61
Educational Reforms
Educational Reforms
University
▶ National university (founded by the government)
▶ Majority (around 50 percent by the 1930s). Experienced rapid growth since
1901 as a result of the late Qing education system reform
▶ Private university
▶ Grew rapidly after the Republic of China (around 36 percent)
▶ Missionary university
▶ Stable growth (around 13 percent) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 54 / 61
Educational Reforms
Educational Reforms
University
▶ National university (founded by the government)
▶ Majority (around 50 percent by the 1930s). Experienced rapid growth since
1901 as a result of the late Qing education system reform
▶ Private university
▶ Grew rapidly after the Republic of China (around 36 percent)
▶ Missionary university
▶ Stable growth (around 13 percent) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 54 / 61
Educational Reforms
Educational Reforms
University
▶ National university (founded by the government)
▶ Majority (around 50 percent by the 1930s). Experienced rapid growth since
1901 as a result of the late Qing education system reform
▶ Private university
▶ Grew rapidly after the Republic of China (around 36 percent)
▶ Missionary university
▶ Stable growth (around 13 percent) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 54 / 61
Educational Reforms
Educational Reforms
University
▶ National university (founded by the government)
▶ Majority (around 50 percent by the 1930s). Experienced rapid growth since
1901 as a result of the late Qing education system reform
▶ Private university
▶ Grew rapidly after the Republic of China (around 36 percent)
▶ Missionary university
▶ Stable growth (around 13 percent) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 54 / 61
Educational Reforms
Geographic Distribution of Universities/Engineers
▶ Provincial capitals (by law)
▶ Treaty ports and/or self-initiated ports
▶ Development of the modern economy (firms, banks) increases the demand for
upper-tailed human capital (engineers, accountants, lawyers)
▶ In turn stimulated the demand for universities, especially those with engineering
and professional schools
▶ This reinforces the development of the modern economy
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 55 / 61
Educational Reforms
Geographic Distribution of Universities/Engineers
▶ Provincial capitals (by law)
▶ Treaty ports and/or self-initiated ports
▶ Development of the modern economy (firms, banks) increases the demand for
upper-tailed human capital (engineers, accountants, lawyers)
▶ In turn stimulated the demand for universities, especially those with engineering
and professional schools
▶ This reinforces the development of the modern economy
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 55 / 61
Educational Reforms
Geographic Distribution of Universities/Engineers
▶ Provincial capitals (by law)
▶ Treaty ports and/or self-initiated ports
▶ Development of the modern economy (firms, banks) increases the demand for
upper-tailed human capital (engineers, accountants, lawyers)
▶ In turn stimulated the demand for universities, especially those with engineering
and professional schools
▶ This reinforces the development of the modern economy
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 55 / 61
Educational Reforms
Geographic Distribution of Universities/Engineers
▶ Provincial capitals (by law)
▶ Treaty ports and/or self-initiated ports
▶ Development of the modern economy (firms, banks) increases the demand for
upper-tailed human capital (engineers, accountants, lawyers)
▶ In turn stimulated the demand for universities, especially those with engineering
and professional schools
▶ This reinforces the development of the modern economy
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 55 / 61
Educational Reforms
Geographic Distribution of Universities/Engineers
▶ Provincial capitals (by law)
▶ Treaty ports and/or self-initiated ports
▶ Development of the modern economy (firms, banks) increases the demand for
upper-tailed human capital (engineers, accountants, lawyers)
▶ In turn stimulated the demand for universities, especially those with engineering
and professional schools
▶ This reinforces the development of the modern economy
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 55 / 61
Educational Reforms
Effect of Treaty Ports on Human Capital Development
Table 7: Determinants of University Locations and Engineers
Universities Universities Universities Engineers
with without
Engineering Engineering
School School
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Treaty Ports 0.391*** 0.113*** 0.217*** 1.096***
(0.072) (0.039) (0.065) (0.170)
Self-initiated Ports 0.179** 0.108** 0.133* 0.911***
(0.082) (0.046) (0.075) (0.195)
Univ. with Engineering Sch. (log) 0.600**
(0.298)
Univ. without Engineering Sch. (log) 0.066
(0.200)
Foreign Firms (log) 0.186* 0.100** 0.073* 0.297*** 0.151
(0.097) (0.044) (0.038) (0.104) (0.109)
Domestic Firms (log) 0.047 -0.007 0.020 0.716*** 0.647***
(0.037) (0.020) (0.022) (0.058) (0.057)
Foreign Banks (log) -0.001 0.058 0.177** -0.155 -0.291
(0.190) (0.079) (0.072) (0.195) (0.194)
Domestic Banks (log) 0.183** 0.075 0.242*** -0.124 0.184
(0.072) (0.055) (0.042) (0.114) (0.123)
jinshi Density (log) 0.174** 0.097 0.004 -0.050 0.192** 0.073 0.346* 0.120 0.072
(0.084) (0.067) (0.046) (0.038) (0.076) (0.057) (0.198) (0.154) (0.154)
Shengyuan Quota Density (log) -0.008 0.058 0.009 0.044 -0.092 0.002 0.028 0.090 0.113
(0.100) (0.060) (0.055) (0.036) (0.091) (0.067) (0.208) (0.183) (0.180)
Provincial Capital 1.066*** 0.833*** 0.402*** 0.337*** 0.747*** 0.508*** 1.885*** 1.201*** 0.770***
(0.092) (0.168) (0.051) (0.110) (0.084) (0.067) (0.218) (0.181) (0.209)
Population Density (log) 0.014 0.002 -0.005 -0.009 -0.006 -0.011 0.125 -0.018 0.009
(0.034) (0.020) (0.019) (0.013) (0.031) (0.023) (0.078) (0.064) (0.062)
Provincial Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes
Observations 255 255 255 255 255 255 255 255 255
Adjusted R2 0.610 0.721 0.352 0.567 0.461 0.701 0.602 0.769 0.777
Standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01
▶ Ports have a significantly positive effect on universities
. . . . . . .(column
. . . . . . .1)
. . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 56 / 61
Educational Reforms
Effect of Treaty Ports on Human Capital Development
Table 7: Determinants of University Locations and Engineers
Universities Universities Universities Engineers
with without
Engineering Engineering
School School
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Treaty Ports 0.391*** 0.113*** 0.217*** 1.096***
(0.072) (0.039) (0.065) (0.170)
Self-initiated Ports 0.179** 0.108** 0.133* 0.911***
(0.082) (0.046) (0.075) (0.195)
Univ. with Engineering Sch. (log) 0.600**
(0.298)
Univ. without Engineering Sch. (log) 0.066
(0.200)
Foreign Firms (log) 0.186* 0.100** 0.073* 0.297*** 0.151
(0.097) (0.044) (0.038) (0.104) (0.109)
Domestic Firms (log) 0.047 -0.007 0.020 0.716*** 0.647***
(0.037) (0.020) (0.022) (0.058) (0.057)
Foreign Banks (log) -0.001 0.058 0.177** -0.155 -0.291
(0.190) (0.079) (0.072) (0.195) (0.194)
Domestic Banks (log) 0.183** 0.075 0.242*** -0.124 0.184
(0.072) (0.055) (0.042) (0.114) (0.123)
jinshi Density (log) 0.174** 0.097 0.004 -0.050 0.192** 0.073 0.346* 0.120 0.072
(0.084) (0.067) (0.046) (0.038) (0.076) (0.057) (0.198) (0.154) (0.154)
Shengyuan Quota Density (log) -0.008 0.058 0.009 0.044 -0.092 0.002 0.028 0.090 0.113
(0.100) (0.060) (0.055) (0.036) (0.091) (0.067) (0.208) (0.183) (0.180)
Provincial Capital 1.066*** 0.833*** 0.402*** 0.337*** 0.747*** 0.508*** 1.885*** 1.201*** 0.770***
(0.092) (0.168) (0.051) (0.110) (0.084) (0.067) (0.218) (0.181) (0.209)
Population Density (log) 0.014 0.002 -0.005 -0.009 -0.006 -0.011 0.125 -0.018 0.009
(0.034) (0.020) (0.019) (0.013) (0.031) (0.023) (0.078) (0.064) (0.062)
Provincial Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes
Observations 255 255 255 255 255 255 255 255 255
Adjusted R2 0.610 0.721 0.352 0.567 0.461 0.701 0.602 0.769 0.777
Standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01
▶ They also have a significant effect on producing more engineers (column
. . . . . . . . . . . . . . . . . . . . . .
7) . . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 57 / 61
Educational Reforms
Effect of Treaty Ports on Human Capital Development
Table 7: Determinants of University Locations and Engineers
Universities Universities Universities Engineers
with without
Engineering Engineering
School School
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Treaty Ports 0.391*** 0.113*** 0.217*** 1.096***
(0.072) (0.039) (0.065) (0.170)
Self-initiated Ports 0.179** 0.108** 0.133* 0.911***
(0.082) (0.046) (0.075) (0.195)
Univ. with Engineering Sch. (log) 0.600**
(0.298)
Univ. without Engineering Sch. (log) 0.066
(0.200)
Foreign Firms (log) 0.186* 0.100** 0.073* 0.297*** 0.151
(0.097) (0.044) (0.038) (0.104) (0.109)
Domestic Firms (log) 0.047 -0.007 0.020 0.716*** 0.647***
(0.037) (0.020) (0.022) (0.058) (0.057)
Foreign Banks (log) -0.001 0.058 0.177** -0.155 -0.291
(0.190) (0.079) (0.072) (0.195) (0.194)
Domestic Banks (log) 0.183** 0.075 0.242*** -0.124 0.184
(0.072) (0.055) (0.042) (0.114) (0.123)
jinshi Density (log) 0.174** 0.097 0.004 -0.050 0.192** 0.073 0.346* 0.120 0.072
(0.084) (0.067) (0.046) (0.038) (0.076) (0.057) (0.198) (0.154) (0.154)
Shengyuan Quota Density (log) -0.008 0.058 0.009 0.044 -0.092 0.002 0.028 0.090 0.113
(0.100) (0.060) (0.055) (0.036) (0.091) (0.067) (0.208) (0.183) (0.180)
Provincial Capital 1.066*** 0.833*** 0.402*** 0.337*** 0.747*** 0.508*** 1.885*** 1.201*** 0.770***
(0.092) (0.168) (0.051) (0.110) (0.084) (0.067) (0.218) (0.181) (0.209)
Population Density (log) 0.014 0.002 -0.005 -0.009 -0.006 -0.011 0.125 -0.018 0.009
(0.034) (0.020) (0.019) (0.013) (0.031) (0.023) (0.078) (0.064) (0.062)
Provincial Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes
Observations 255 255 255 255 255 255 255 255 255
Adjusted R2 0.610 0.721 0.352 0.567 0.461 0.701 0.602 0.769 0.777
Standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01
▶ Foreign firms contributed to the establishment of universities (column 2),
. . . . . . . . . . . . . . . . . . . . . .
especially universities with an engineering school
. . . (columns
. . . . . . . 4
. .and
. . . 6)
. . . . . . .
Kung (2022) Econ 2264 January 18 58 / 61
Educational Reforms
Effect of Treaty Ports on Human Capital Development
Table 7: Determinants of University Locations and Engineers
Universities Universities Universities Engineers
with without
Engineering Engineering
School School
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Treaty Ports 0.391*** 0.113*** 0.217*** 1.096***
(0.072) (0.039) (0.065) (0.170)
Self-initiated Ports 0.179** 0.108** 0.133* 0.911***
(0.082) (0.046) (0.075) (0.195)
Univ. with Engineering Sch. (log) 0.600**
(0.298)
Univ. without Engineering Sch. (log) 0.066
(0.200)
Foreign Firms (log) 0.186* 0.100** 0.073* 0.297*** 0.151
(0.097) (0.044) (0.038) (0.104) (0.109)
Domestic Firms (log) 0.047 -0.007 0.020 0.716*** 0.647***
(0.037) (0.020) (0.022) (0.058) (0.057)
Foreign Banks (log) -0.001 0.058 0.177** -0.155 -0.291
(0.190) (0.079) (0.072) (0.195) (0.194)
Domestic Banks (log) 0.183** 0.075 0.242*** -0.124 0.184
(0.072) (0.055) (0.042) (0.114) (0.123)
jinshi Density (log) 0.174** 0.097 0.004 -0.050 0.192** 0.073 0.346* 0.120 0.072
(0.084) (0.067) (0.046) (0.038) (0.076) (0.057) (0.198) (0.154) (0.154)
Shengyuan Quota Density (log) -0.008 0.058 0.009 0.044 -0.092 0.002 0.028 0.090 0.113
(0.100) (0.060) (0.055) (0.036) (0.091) (0.067) (0.208) (0.183) (0.180)
Provincial Capital 1.066*** 0.833*** 0.402*** 0.337*** 0.747*** 0.508*** 1.885*** 1.201*** 0.770***
(0.092) (0.168) (0.051) (0.110) (0.084) (0.067) (0.218) (0.181) (0.209)
Population Density (log) 0.014 0.002 -0.005 -0.009 -0.006 -0.011 0.125 -0.018 0.009
(0.034) (0.020) (0.019) (0.013) (0.031) (0.023) (0.078) (0.064) (0.062)
Provincial Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes
Observations 255 255 255 255 255 255 255 255 255
Adjusted R2 0.610 0.721 0.352 0.567 0.461 0.701 0.602 0.769 0.777
Standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01
▶ Whereas banks contributed to universities without an engineering school
. . . . . . . . . . . . . . . . . . . . . .
(columns 4 and 6) . . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 59 / 61
Educational Reforms
Effect of Treaty Ports on Human Capital Development
Table 7: Determinants of University Locations and Engineers
Universities Universities Universities Engineers
with without
Engineering Engineering
School School
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Treaty Ports 0.391*** 0.113*** 0.217*** 1.096***
(0.072) (0.039) (0.065) (0.170)
Self-initiated Ports 0.179** 0.108** 0.133* 0.911***
(0.082) (0.046) (0.075) (0.195)
Univ. with Engineering Sch. (log) 0.600**
(0.298)
Univ. without Engineering Sch. (log) 0.066
(0.200)
Foreign Firms (log) 0.186* 0.100** 0.073* 0.297*** 0.151
(0.097) (0.044) (0.038) (0.104) (0.109)
Domestic Firms (log) 0.047 -0.007 0.020 0.716*** 0.647***
(0.037) (0.020) (0.022) (0.058) (0.057)
Foreign Banks (log) -0.001 0.058 0.177** -0.155 -0.291
(0.190) (0.079) (0.072) (0.195) (0.194)
Domestic Banks (log) 0.183** 0.075 0.242*** -0.124 0.184
(0.072) (0.055) (0.042) (0.114) (0.123)
jinshi Density (log) 0.174** 0.097 0.004 -0.050 0.192** 0.073 0.346* 0.120 0.072
(0.084) (0.067) (0.046) (0.038) (0.076) (0.057) (0.198) (0.154) (0.154)
Shengyuan Quota Density (log) -0.008 0.058 0.009 0.044 -0.092 0.002 0.028 0.090 0.113
(0.100) (0.060) (0.055) (0.036) (0.091) (0.067) (0.208) (0.183) (0.180)
Provincial Capital 1.066*** 0.833*** 0.402*** 0.337*** 0.747*** 0.508*** 1.885*** 1.201*** 0.770***
(0.092) (0.168) (0.051) (0.110) (0.084) (0.067) (0.218) (0.181) (0.209)
Population Density (log) 0.014 0.002 -0.005 -0.009 -0.006 -0.011 0.125 -0.018 0.009
(0.034) (0.020) (0.019) (0.013) (0.031) (0.023) (0.078) (0.064) (0.062)
Provincial Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes
Observations 255 255 255 255 255 255 255 255 255
Adjusted R2 0.610 0.721 0.352 0.567 0.461 0.701 0.602 0.769 0.777
Standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01
▶ Universities with an engineering school had a significant effect on the num-
. . . . . . . . . . . . . . . . . . . . . .
ber of engineers (column 9) . . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 60 / 61
Political Reforms
Political Reforms
▶ AEA Conference (for the next set of slide)
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 61 / 61
Population in Qing China (c. 1644-1912)
Back
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 1/5
Revolution in China
Independence and Uprisings in the 1911 Revolution
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 2/5
The 1911 Revolution
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 3/5
The 1911 Revolution
▶ On 1 January 1912, the Republic of China was formally established, the
emperor was replaced by a president, and a legislature was convened in
Peking
Back . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 4/5
Spatial Distribution of Treaty Ports Opened Before 1865 and Munition Factories
Back . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Kung (2022) Econ 2264 January 18 5/5
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