Special economic zone and infant mortality: Evidence from China

Abstract By exploiting the development of special economic zones (SEZs) in China as a quasi‐natural experiment, this paper evaluates how such zones affect infant mortality. Difference‐in‐differences analysis reveals that SEZs significantly decrease the local infant mortality rate, and the impact is larger for male infants and infants with less‐educated mothers. Further studies show that the SEZs, which acts as an economic growth shock, improve infant survival by increasing the local income. Furthermore, there is no supportive evidence that the SEZs significantly alter either women's fertility‐associated behaviors or environmental pollution. These results highlight the previously ignored human capital‐related consequences of place‐based policies in China.