Foreign direct investment and economic growth: the role of democracy

This study investigates the growth-effect of foreign direct investment (FDI) in 67 developing countries covering from 1984 to 2016, with a special emphasis on the role of democracy. The empirical results obtained from generalized method of moments (GMM) estimation demonstrate that democracy plays a crucial role in moderating the positive effect of FDI on output growth. The results are robust to several alternative measures of democracy and FDI. This suggests that the marginal effect of FDI on growth depends on the level of democracy such that countries which promote democratic institution benefit more from FDI inflows. The finding is consistent with the growing view that the growth-effect of FDI depends on other intervening factors in the host countries

Spatial analysis of imbalanced sex ratio at birth in China

Over the past many decades, China's sex ratio at birth (SRB) has risen significantly. This trend can have serious social and economic consequences as it may affect marriage market, labor market, economic activity and even the crime rate. Therefore, it is critically important for the Chinese government to explore the causes of this problem and address it accordingly. This study examines the causes of imbalance in China’s SRB using data from the Sixth National Population Census of China. The results reveal that the SRB in China has a positive spatial effect. Geographically, SRB is higher in eastern provinces and lower in western provinces. This suggests that the government should implement different policies in different provinces. Furthermore, the results of spatial econometric regression show that one child policy, sex selection technology, education and level of economic development significantly influence SRB. These findings imply that the government should promote fertility rates, educational opportunity, and economic development. Moreover, it should prevent sex-selective abortions