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

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  • Yao Yao
  • George S. Chen
  • Lin Zhang

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.

Suggested Citation

  • Yao Yao & George S. Chen & Lin Zhang, 2022. "Gender segregation in the causal effect of foreign direct investment on educational attainment: the Chinese experience," Applied Economics, Taylor & Francis Journals, vol. 54(51), pages 5889-5903, November.
  • Handle: RePEc:taf:applec:v:54:y:2022:i:51:p:5889-5903
    DOI: 10.1080/00036846.2022.2055268
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    Cited by:

    1. Li, Yifan & Miao, Zhuang & Wang, Junbo & Zhang, Yan, 2023. "The FDI liberalization and skill structure of labor market in China: The predicament of migrants," MPRA Paper 117923, University Library of Munich, Germany.

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