Gender segregation in the causal effect of foreign direct investment on educational attainment: the Chinese experience

Yao Yao, George S. Chen*, Lin Zhang

*Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

36 Downloads (CityUHK Scholars)

Abstract

We examine the causal effect of foreign direct investment (FDI) on educational attainment through the lens of gender segregation in China. Using a comprehensive dataset for the 1985-2014 period and controlling for endogeneity, we find that a more prominent FDI presence causes higher educational attainment, particularly for women. Moreover, we show that this gender-segregated causal effect remains robust to different estimators, measurements and specifications. Overall, we uncover an important social externality of FDI that has never been explored systematically in the literature; namely, FDI generates positive spillovers on female educational attainment in its host country.
Original languageEnglish
JournalApplied Economics
DOIs
Publication statusOnline published - 23 Mar 2022

Research Keywords

  • Human capital
  • foreign direct investment
  • educational attainment
  • gender segregation
  • China
  • J16
  • J24
  • J14
  • F23
  • MANUFACTURING SECTOR
  • ECONOMIC-GROWTH
  • DOMESTIC FIRMS
  • INEQUALITY
  • WAGE
  • FDI
  • DETERMINANTS
  • PANEL
  • PRODUCTIVITY
  • PERSPECTIVE

Publisher's Copyright Statement

  • COPYRIGHT TERMS OF DEPOSITED POSTPRINT FILE: This is an Accepted Manuscript of an article published by Taylor & Francis in APPLIED ECONOMICS on 23 May 2022, available online: http://www.tandfonline.com/10.1080/00036846.2022.2055268.

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