Trade liberalization and the health of working-age adults: Evidence from China

Abstract

Abstract Past research has examined the effects of import competition on workers health outcomes, but few studies have investigated the impact of export expansion. We take advantage of the exogenous changes in export tariffs on Chinese products after the Reform and Opening-Up policies in China to estimate the effect of reductions in export tariffs on the health of working-age adults. Using China Health and Nutrition Survey data from 1993 to 2009, we create individual-level panels and find that reductions in export tariffs improved the health of working-age adults. Analysis of possible mechanisms shows that reduced export tariffs led to increased earnings and hours worked as well as decreased malnutrition, suggesting an income effect driven by export-led growth. This conclusion is further supported by the observation of greater health improvements among those without urban residency and those with low educational attainment. The findings contribute to the limited evidence on this topic among developing economies as well as the ongoing discussion of the relationship between income and health.