The Persistent Effect of Famine on Present-Day China: Evidence from the Billionaires

45 Pages Posted: 24 Apr 2021

See all articles by Pramod Kumar Sur

Pramod Kumar Sur

Asian Growth Research Institute (AGI); Osaka University

Masaru Sasaki

Osaka University - Institute of Social and Economic Research (ISER)

Abstract

More than half a century has passed since the Great Chinese Famine (1959–1961), and China has transformed from a poor, underdeveloped country to the world's leading emerging economy. Does the effect of the famine persist today? To explore this question, we combine historical data on province-level famine exposure with contemporary data on individual wealth. To better understand if the relationship is causal, we simultaneously account for the well-known historical evidence on the selection effect arising for those who survive the famine and those born during this period, as well as the issue of endogeneity on the exposure of a province to the famine. We find robust evidence showing that famine exposure has had a considerable negative effect on the contemporary wealth of individuals born during this period. Together, the evidence suggests that the famine had an adverse effect on wealth, and it is even present among the wealthiest cohort of individuals in present-day China.

JEL Classification: D31, O15, N35

Suggested Citation

Sur, Pramod Kumar and Sasaki, Masaru, The Persistent Effect of Famine on Present-Day China: Evidence from the Billionaires. IZA Discussion Paper No. 14291, Available at SSRN: https://ssrn.com/abstract=3833223 or http://dx.doi.org/10.2139/ssrn.3833223

Pramod Kumar Sur (Contact Author)

Asian Growth Research Institute (AGI) ( email )

11-4, Ohtemachi, Kokurakita-ku
Kitakyushu, Fukuoka 803-0814
Japan

Osaka University

Masaru Sasaki

Osaka University - Institute of Social and Economic Research (ISER) ( email )

6-1 Mihogaoka
Ibaraki, Osaka 567-0047
Japan

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