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

Yao Yao, George Chen and Lin Zhang

Applied Economics, 2022, vol. 54, issue 51, 5889-5903

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.

Date: 2022
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DOI: 10.1080/00036846.2022.2055268

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