Abstract
The income-adjusted price of fast food in China is five times more than in the United States, yet we show that the introduction of Western fast-food restaurants to China still leads to significant weight gain in children. Using the community-year-level presence of Western fast-food outlets, difference-in-differences estimations find a 4.8-percentage-point increase in the prevalence of overweight/obese children after controlling for child and year fixed effects. The effect decreases at a distance of 3-4 km from a fast-food restaurant, and we find no further weight gain 2 years after the restaurant's introduction. The underweight rate is not affected by fast-food introduction. The increase in fat share of energy intake serves as the channel for weight gain. Children in high-income families, younger than 11 years, and girls are more affected than other Chinese children.
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