Weight gains from multinational fast-food restaurants: Evidence from China

This study examines the obesity effect of proximity to US fast-food restaurants (Kentucky Fried Chicken [KFC] or McDonald) on Chinese. We first provide some stylized facts and raise the hypothesis that proximity to KFC or McDonald increases overweight. We then put the hypothesis into a test using the China Health and Nutrition Survey data. Exploiting community (district in urban area and village unit in rural area) level KFC or McDonald density within 10 km by using the geocoding information, we find that the exposure to KFC or McDonald adversely affects people obesity. Our results are robust in a number of additional checks and placebo tests. The pro-obesity effects are more pronounced for the lower educated than the higher educated. Further welfare analysis indicates that ignoring obesity outcomes would substantially underestimate the welfare disparity between high educated and low educated in China [EconLit Citations: F23, I10, I12, J00].