TY  - BOOK
AU  - Donaldson,John B.
AU  - Koulovatianos,Christos
AU  - Li,Jian
AU  - Mehra,Rajnish
ED  - National Bureau of Economic Research.
TI  - Demographics and FDI: Lessons from China's One-Child Policy 
T2  - NBER working paper series
PY  - 2018///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - January 2018; Hardcopy version available to institutional subscribers
N2  - Following the introduction of the one-child policy in China, the capital-labor ratio of China increased relative to that of India, while FDI/GDP inflows to China vs India simultaneously declined. These observations are explained in the context of a simple neoclassical OLG paradigm. The adjustment mechanism works as follows: the reduction in the growth rate of the (urban) labor force due to the one-child policy increases the capital per worker inherited from the previous generation. The resulting increase in China's domestic capital - labor ratio thus 'crowds out' the need for FDI in China relative to India. Our paper is a contribution to the nascent literature exploring demographic transitions and their effects on FDI flows
UR  - https://www.nber.org/papers/w24256
UR  - http://dx.doi.org/10.3386/w24256
ER  -