Does trade liberalization improve child health? Evidence from China

Abstract

Positive child health is an important development indicator and is also a source of long-term economic growth. Whilst there has been previous research on the relationship between trade liberalization and child health, the conclusion is mixed and the underlying mechanisms remain limited. This paper estimates the effect of reductions in export tariffs on child health by taking advantage of exogenous changes in export tariffs on Chinese products since the reform and opening-up in 1978. We apply the Bartik approach and refer to China Health and Nutrition Survey data from 1993 to 2009, and find that export expansion causes a significant deterioration in child health, with the more obvious effects among relatively vulnerable families in rural areas, individuals with a low level of education, and girls. In addition, the mechanism analysis shows that export expansion increases the income and employment level of working-age parents. However, the income effect does not offset the negative impact of export expansion on parental care, the children being left behind, and child labor.