TY  - RPRT
        AU  - Erten, Bilge
AU  - Leight, Jessica
AU  - Zhu, Lianming
        TI  - The Effects of FDI Liberalization on Structural Transformation and Demographic Change: Evidence from China
        PY  - 2023/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16094
        UR  - https://www.iza.org/publications/dp16094
        AB  - 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.

        KW  - foreign direct investment
KW  - structural transformation
KW  - demographic change
KW  - China
        ER  -