Donaldson, John B. - 2018
rich to poor countries. In this paper we consider a natural experiment: using China as the treated country and India as the …-child policy in China, the capital-labor (K/L) ratio of China increased relative to that of India, and, simultaneously, relative … FDI inflows into China vs. India declined. These observations are explained in the context of a simple neoclassical OLG …