On 13 November 2023, the 33rd Xi Xian Academic Luncheon, co-organised by IIDPF and the School of Public Finance and Taxation, was successfully held in Conference Room 119, Wenqin Building. As the keynote speaker of this academic luncheon, Assistant Professor Chen Fanghao from the School of Economics, Jinan University delivered a keynote speech entitled “Familiar Strangers: The Role of Diaspora Networks in Foreign Investment and Long-run Development”. The luncheon was chaired by Professor Ye Jingjing from the School of Public Finance and Taxation, and attended by more than 30 faculty members and students, including Professor Rong Zhao from the Wenlan School of Business, Associate Professor Huang Hongwei from the School of Public Administration, Associate Professor Zhao Ying and Associate Professor Zhang Ziyao from the School of Public Finance and Taxation, researchers Dr Wan Qian, and Dr Zou Jianwen from IIDPF.
Based on the background of reform and opening up and the phenomenon of diaspora investment, Chen Fanghao uses industrial and commercial registration data, as well as the opening up of Chinese prefectures during 1981-96 and the variation in geographic distribution of surnames as an identification strategy, to explore the dominant role of diasporas in bringing in pioneering investment during the early stages of market formation, and examines whether they generate positive effects on subsequent local industrial development. The research indicates that, firstly, following China's opening up in 1979, initial foreign direct investment was largely driven by the Chinese diaspora, while massive non-diaspora foreign investment did not materialize until the late 1990s. Secondly, diaspora firms tended to venture into newly opened prefectures which are more likely to be the ancestral origins of their legal representatives. Further analysis reveals that the entry of diaspora firms stimulated subsequent entry of both non-diaspora foreign and domestic private enterprises.
Assistant Professor Chen Fanghao gave a wonderful speech to the faculty members and students present and at the same time triggered their in-depth thinking. In the discussion session, the attending faculty and students actively interacted regarding the research background, research questions and research methods.
Brief Bio
Chen Fanghao, a PhD in Economics from the National School of Development of Peking University in 2022 and is currently an Assistant Professor at the School of Economics of Jinan University. His research interests focus on urban economics, international economics and development economics. His research results have been published in Journal of Management World, China Economic Quarterly, etc.