【摘 要】
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The first Sino-Japanese war that took place in 1894-1895 was concluded with Japans victory and the Treaty of Shimonoseki which in effect requires China to pay a war indemnity of 230 million taels of K
【机 构】
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School of Economics, Henan University, Kaifeng, Henan Province, China, 475000
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The first Sino-Japanese war that took place in 1894-1895 was concluded with Japans victory and the Treaty of Shimonoseki which in effect requires China to pay a war indemnity of 230 million taels of K.P.silver;cede Taiwan to Japan in perpetuity and full sovereignty;open treaty ports for Japanese export and investment, etc.The amount of indemnity was about a quarter of Japans GDP at the time, or 1/10 of Chinas.The conventional wisdom believes that the war indemnity payments had profound impacts on both the donor and recipient, even for the growth trajectories a century later.Using a small open economy full DSGE model, this paper investigates the impacts of the war indemnity on Chinas economy for 1895-1900, particularly issues related to the "transfer problem".Both our theoretical model and calibration predicts an improvement of the terms of trade which fits the Chinese history.
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