Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272721 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16094
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
foreign direct investment
structural transformation
demographic change
China
JEL: 
F23
F63
J13
Document Type: 
Working Paper

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