Geography, trade, and internal migration in China
This paper quantitatively studies the local welfare impacts of inter-city migration in China. We structurally estimate a trade model with endogenous migration decisions using data from 279 prefecture-level cities. The results suggest that inflows of migrant workers increase welfare in the destinatio...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
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2021
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| Online Access: | https://hdl.handle.net/10356/154602 |
| _version_ | 1811679520910999552 |
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| author | Ma, Lin Tang, Yang |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Ma, Lin Tang, Yang |
| author_sort | Ma, Lin |
| collection | NTU |
| description | This paper quantitatively studies the local welfare impacts of inter-city migration in China. We structurally estimate a trade model with endogenous migration decisions using data from 279 prefecture-level cities. The results suggest that inflows of migrant workers increase welfare in the destination cities between 2000 and 2005 despite their negative impacts on congestion and nominal wage. The positive local impacts of migration depend crucially on the endogenous firm entry. The positive impacts in the destination cities also spill over to the neighboring cities through inter-city trade, often leading to higher welfare gains in the nearby cities than the destination cities themselves. We also show that further relaxing the Hukou restrictions in the largest Chinese cities is welfare-improving to the local residents. |
| first_indexed | 2024-10-01T03:10:28Z |
| format | Journal Article |
| id | ntu-10356/154602 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:10:28Z |
| publishDate | 2021 |
| record_format | dspace |
| spelling | ntu-10356/1546022023-05-19T07:31:15Z Geography, trade, and internal migration in China Ma, Lin Tang, Yang Nanyang Business School Business::General Regional Trade Migration This paper quantitatively studies the local welfare impacts of inter-city migration in China. We structurally estimate a trade model with endogenous migration decisions using data from 279 prefecture-level cities. The results suggest that inflows of migrant workers increase welfare in the destination cities between 2000 and 2005 despite their negative impacts on congestion and nominal wage. The positive local impacts of migration depend crucially on the endogenous firm entry. The positive impacts in the destination cities also spill over to the neighboring cities through inter-city trade, often leading to higher welfare gains in the nearby cities than the destination cities themselves. We also show that further relaxing the Hukou restrictions in the largest Chinese cities is welfare-improving to the local residents. Ministry of Education (MOE) Yang Tang acknowledges financial support from Singapore MOE-Tier 1 research fund(M4011853). 2021-12-29T03:02:40Z 2021-12-29T03:02:40Z 2020 Journal Article Ma, L. & Tang, Y. (2020). Geography, trade, and internal migration in China. Journal of Urban Economics, 115, 103181-. https://dx.doi.org/10.1016/j.jue.2019.06.004 0094-1190 https://hdl.handle.net/10356/154602 10.1016/j.jue.2019.06.004 2-s2.0-85068256181 115 103181 en Journal of Urban Economics © 2019 Elsevier Inc. All rights reserved. |
| spellingShingle | Business::General Regional Trade Migration Ma, Lin Tang, Yang Geography, trade, and internal migration in China |
| title | Geography, trade, and internal migration in China |
| title_full | Geography, trade, and internal migration in China |
| title_fullStr | Geography, trade, and internal migration in China |
| title_full_unstemmed | Geography, trade, and internal migration in China |
| title_short | Geography, trade, and internal migration in China |
| title_sort | geography trade and internal migration in china |
| topic | Business::General Regional Trade Migration |
| url | https://hdl.handle.net/10356/154602 |
| work_keys_str_mv | AT malin geographytradeandinternalmigrationinchina AT tangyang geographytradeandinternalmigrationinchina |