Skip directly to content

Minimize RSR Award Detail

Research Spending & Results

Award Detail

Awardee:TRUSTEES OF PRINCETON UNIVERSITY, THE
Doing Business As Name:Princeton University
PD/PI:
  • Adrien Matray
  • (609) 216-1591
  • amatray@princeton.edu
Award Date:04/12/2021
Estimated Total Award Amount: $ 80,000
Funds Obligated to Date: $ 80,000
  • FY 2021=$80,000
Start Date:07/01/2021
End Date:06/30/2024
Transaction Type:Grant
Agency:NSF
Awarding Agency Code:4900
Funding Agency Code:4900
CFDA Number:47.075
Primary Program Source:040100 NSF RESEARCH & RELATED ACTIVIT
Award Title or Description:Collaborative Research: Foreign Capital Liberalization, Structural Change, and Economic Empowerment of Vulnerable Groups
Federal Award ID Number:2049780
DUNS ID:002484665
Parent DUNS ID:002484665
Program:Economics
Program Officer:
  • Kwabena Gyimah-Brempong
  • (703) 292-7466
  • kgyimahb@nsf.gov

Awardee Location

Street:Off. of Research & Proj. Admin.
City:Princeton
State:NJ
ZIP:08544-2020
County:Princeton
Country:US
Awardee Cong. District:12

Primary Place of Performance

Organization Name:Princeton University
Street:
City:Princeton
State:NJ
ZIP:08544-2020
County:Princeton
Country:US
Cong. District:12

Abstract at Time of Award

Many countries have promoted increased foreign capital liberalization as a path to economic growth and development. However, little is known about the social consequences of these policies. This research project will study the socio-political and distributional effects of foreign direct investment (FDI) induced by these policy changes. Using the staggered liberalization of access to foreign capital across several industry groups, the research will attempt to answer the following questions: (1) Does foreign capital liberalization in the manufacturing and/or service sector accelerate the process of changing the structure of economies? (2) What are the social, economic, health, and political, and distributional consequences of foreign capital liberalization policies, especially for vulnerable groups, such as women, racial and other minorities? The research project will build a large data set disaggregated at local administration level to study these issues. The results of this research project will guide policies to deal with the possible economic effects of foreign direct investment. It will also provide guidance on policies to decrease the possible negative social consequences and distributional effects of foreign direct investments. This project exploits the staggered liberalization of foreign capital flows to different disaggregated industries at different times to measure the causal average and distributional effects of foreign capital liberalization. This project has two parts: The first part measures the effects on occupational switching, gender attitudes, human capital, and fertility. The second part will measure the effects on social outcomes related to the rise of populism, such as crime, political attitudes, and religious violence. Treatment of industry by foreign capital liberalization is measured by the pre- and post-reform mix of industries in a district. The analysis will then use a local labor market difference-in-differences (diff-in-diff) strategy to compares outcome change in affected and non affected districts from the pre- to post-reform period. The project will build panel datasets that will be harmonized at the district-level to measure the distribution effects of policy changes. This project will provide one of the first causal evidence on the effects of foreign capital liberalization on structural change as well as on a broad range social effects, such as female labor force participation, fertility, and education. The results of this project will provide guidance on policies to decrease the possible negative social consequences and distributional effects of foreign direct investments. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.

For specific questions or comments about this information including the NSF Project Outcomes Report, contact us.