Trade Liberalization in a Traditional Society: Implications for Relative Female Survival

Abstract

Trade openness has ambiguous implications for son preference in a traditional society. While it can work in favor of girls by improving relative female wages or average household income, it can worsen the relative preference for girls by changing marriage payments. This paper exploits an exogenous policy shock in India to study the impact of trade openness on son preference, as reflected in the sex-ratio. Survival chances of girls worsened in regions experiencing high trade openness, particularly for Hindus belonging to traditionally higher castes. I argue that Dowry inflation is a possible channel through which trade liberalization affected sex-ratio.