Arbeitspapier

The Effects of FDI Liberalization on Structural Transformation and Demographic Change: Evidence from China

How does foreign direct investment (FDI) liberalization shape structural transformation and demographic change in developing countries? We provide new evidence on this question using five waves of Chinese census data between 1990 and 2015, exploiting quasi-exogenous variation in FDI liberalization induced by multiple waves of regulatory relaxation. We find that counties more exposed to liberalization experience a relative shift out of agricultural employment into manufacturing and services for both men and women. Exposure to FDI liberalization also reduces the probability of marriage, and induces a decline in the birth rate and the share of women with children.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 16094

Classification
Wirtschaft
Multinational Firms; International Business
Economic Impacts of Globalization: Economic Development
Fertility; Family Planning; Child Care; Children; Youth
Subject
foreign direct investment
structural transformation
demographic change
China

Event
Geistige Schöpfung
(who)
Erten, Bilge
Leight, Jessica
Zhu, Lianming
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2023

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Erten, Bilge
  • Leight, Jessica
  • Zhu, Lianming
  • Institute of Labor Economics (IZA)

Time of origin

  • 2023

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