Intra-Household Allocation of Nutrients in an Opening China

This paper uses China Health and Nutrition Survey (CHNS) data to analyze the effect of foreign direct investment (FDI) on nutrient intakes across various family roles to identify the different family roles’ heterogeneous nutrition intake responses to economic openness. The empirical evidence shows that FDI enhances labor forces’ calorie intake significantly, especially for rural households. The government should continue facilitating more FDI inflows, especially FDI in secondary industries for rural populations. However, the larger the family, the smaller the effect of FDI on nutrient intake for some family roles. The elderly and children may be weaker responders on nutrient intake than other family members in an open economy. This implies the existence of intra-household redistribution and that the level of effectiveness will decrease with family size. The results suggest that family members in rural areas can benefit more in terms of nutrient intake. Our empirical evidence also indicates that female family members’ calorie intake from the FDI effect is higher than that of male family members (except for the granddaughter/grandson). Preferential policies should be provided for the FDI, flowing to rural areas and female dominant industries