IDEAS home Printed from https://ideas.repec.org/a/bla/apacel/v35y2021i1p49-66.html
   My bibliography  Save this article

Return home and start new businesses: internal migration in China

Author

Listed:
  • Liqiong Lin
  • Mohamad D. Revindo
  • Christopher Gan
  • Quang Thi Thieu Nguyen

Abstract

Internal migration patterns in China are characterised by rapid urbanisation and cross‐regional movement and more recently by the return of migrants to their native counties. This study investigates the drivers of migrants' permanent return and their likelihood of starting new businesses in their counties of origin. The results suggest that migrants are discouraged from permanent resettlement in urban areas because of family ties and the aspiration to start businesses in their villages of origin. The study also provides evidence that the probability of starting a business upon return is affected by the migrants' accumulation of work experience, business experience, the savings earned while away, financial stability, and the social capital they have in their home counties. The results provide important insights for emerging countries in overcoming rapid urbanisation and imbalanced regional economic growth.

Suggested Citation

  • Liqiong Lin & Mohamad D. Revindo & Christopher Gan & Quang Thi Thieu Nguyen, 2021. "Return home and start new businesses: internal migration in China," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 35(1), pages 49-66, May.
  • Handle: RePEc:bla:apacel:v:35:y:2021:i:1:p:49-66
    DOI: 10.1111/apel.12314
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/apel.12314
    Download Restriction: no

    File URL: https://libkey.io/10.1111/apel.12314?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ilahi, Nadeem, 1999. "Return Migration and Occupational Change," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 170-186, June.
    2. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    3. Wahba, Jackline & Zenou, Yves, 2012. "Out of sight, out of mind: Migration, entrepreneurship and social capital," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 890-903.
    4. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
    5. Nadeem Ilahi, 1999. "Return Migration and Occupational Change," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 170-186, June.
    6. Rachel Murphy, 1999. "Return migrant entrepreneurs and economic diversification in two counties in south Jiangxi, China," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(4), pages 661-672.
    7. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588.
    8. McCormick, Barry & Wahba, Jackline, 2001. "Overseas Work Experience, Savings and Entrepreneurship amongst Return Migrants to LDCs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 164-178, May.
    9. George J. Borjas & Bernt Bratsberg, 2021. "Who Leaves? The Outmigration Of The Foreign-Born," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 5, pages 93-104, World Scientific Publishing Co. Pte. Ltd..
    10. Jackline Wahba, 2015. "Selection, selection, selection: the impact of return migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 535-563, July.
    11. Li Yu & Xundong Yin & Xiang Zheng & Wenwei Li, 2017. "Lose to win: entrepreneurship of returned migrants in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(2), pages 341-374, March.
    12. Rachel Connelly & Kenneth Roberts & Zhenzhen Zheng, 2010. "The Impact of Circular Migration on the Position of Married Women in Rural China," Feminist Economics, Taylor & Francis Journals, vol. 16(1), pages 3-41.
    13. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
    14. Dustmann, Christian & Fadlon, Itzhak & Weiss, Yoram, 2011. "Return migration, human capital accumulation and the brain drain," Journal of Development Economics, Elsevier, vol. 95(1), pages 58-67, May.
    15. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence," CReAM Discussion Paper Series 0702, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    16. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 236-256, June.
    17. Zhongdong Ma, 2001. "Urban Labour-Force Experience as a Determinant of Rural Occupation Change: Evidence from Recent Urban-Rural Return Migration in China," Environment and Planning A, , vol. 33(2), pages 237-255, February.
    18. Denise Hare, 1999. "'Push' versus 'pull' factors in migration outflows and returns: Determinants of migration status and spell duration among China's rural population," Journal of Development Studies, Taylor & Francis Journals, vol. 35(3), pages 45-72.
    19. Miao David Chunyu & Zai Liang & Yingfeng Wu, 2013. "Interprovincial Return Migration in China: Individual and Contextual Determinants in Sichuan Province in the 1990S," Environment and Planning A, , vol. 45(12), pages 2939-2958, December.
    20. Paull Weber & Michael Schaper, 2004. "Understanding The Grey Entrepreneur," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 12(02), pages 147-164.
    21. Merkle, Lucie & Zimmermann, Klaus F., 1992. "Savings, remittances, and return migration," Economics Letters, Elsevier, vol. 38(1), pages 77-81, January.
    22. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.
    23. Barry McCormick & Jackline Wahba, 2001. "Overseas Work Experience, Savings and Entrepreneurship Amongst Return Migrants to LDCs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 164-178, May.
    24. Zai Liang & Miao David Chunyu, 2013. "Migration within China and from China to the USA: The effects of migration networks, selectivity, and the rural political economy in Fujian Province," Population Studies, Taylor & Francis Journals, vol. 67(2), pages 209-223, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jiangbin Yin & Xiaoyan Huang & Yunyun Dong & Min Zhao & Weibao Tan, 2021. "Dual‐level impact of regional context and individual attributes on entrepreneurship among return migrants in China," Growth and Change, Wiley Blackwell, vol. 52(2), pages 1099-1116, June.
    2. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    3. Christian Dustmann & Joseph-Simon Görlach, 2016. "The Economics of Temporary Migrations," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 98-136, March.
    4. Naudé, Wim & Siegel, Melissa & Marchand, Katrin, 2015. "Migration, Entrepreneurship and Development: A Critical Review," IZA Discussion Papers 9284, Institute of Labor Economics (IZA).
    5. Ismael Issifou & Francesco Magris, 2017. "Migration outflows and optimal migration policy: rules versus discretion," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 16(2), pages 87-112, August.
    6. Sandra Orozco-Aleman & Heriberto Gonzalez-Lozano, 2021. "Return Migration and Self-Employment: Evidence from Mexican Migrants," Journal of Labor Research, Springer, vol. 42(2), pages 148-183, June.
    7. Zachary Ward, 2015. "The U-Shaped Self-Selection of Return Migrants," CEH Discussion Papers 035, Centre for Economic History, Research School of Economics, Australian National University.
    8. Al Husein, N. & Wagner, N., 2020. "Determinants of intended return migration among refugees : A comparison of Syrian refugees in Germany and Turkey," ISS Working Papers - General Series 127798, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    9. Jackline Wahba, 2014. "Return migration and economic development," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 12, pages 327-349, Edward Elgar Publishing.
    10. Mahé, Clothilde, 2016. "Skills and entrepreneurship: Are return migrants 'Jacks-of-all-trades'?," MERIT Working Papers 2016-071, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Akay, Alpaslan & Brausmann, Alexandra & Djajic, Slobodan & Kirdar, Murat G., 2018. "Purchasing-Power-Parity and the Saving Behavior of Temporary Migrants," IZA Discussion Papers 11679, Institute of Labor Economics (IZA).
    12. Marchetta, Francesca, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," World Development, Elsevier, vol. 40(10), pages 1999-2013.
    13. Célia Taborda Silva, 2019. "Civic Participation and Demonstrations in Portugal (2011–2012)," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 4, September.
    14. Junge, Vera & Revilla Diez, Javier & Schätzl, Ludwig, 2015. "Determinants and Consequences of Internal Return Migration in Thailand and Vietnam," World Development, Elsevier, vol. 71(C), pages 94-106.
    15. Anu Abraham, 2020. "International Migration, Return Migration and Occupational Mobility: Evidence from Kerala, India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(4), pages 1223-1243, December.
    16. Marco Di Cintio & Emanuele Grassi, 2016. "The returns to temporary migration: The case of Italian Ph.D.s," EERI Research Paper Series EERI RP 2016/15, Economics and Econometrics Research Institute (EERI), Brussels.
    17. Kupets Olga, 2011. "Brain Gain or Brain Waste? The Performance of Return Labor Migrants in the Ukrainian Labor Market," EERC Working Paper Series 11/06e, EERC Research Network, Russia and CIS.
    18. Jamal Bouoiyour & Amal Miftah, 2017. "Do Migrants Transfer Political and Cultural Norms to Their Origin Country? Some Evidence From Some Arab Countries," Working Papers 1098, Economic Research Forum, revised 05 2017.
    19. Akay, Alpaslan & Brausmann, Alexandra & Djajić, Slobodan & Kırdar, Murat G., 2021. "Purchasing-power-parity and the saving behavior of temporary migrants," European Economic Review, Elsevier, vol. 134(C).
    20. Craig Loschmann & Katrin Marchand, 2021. "The labor market reintegration of returned refugees in Afghanistan," Small Business Economics, Springer, vol. 56(3), pages 1033-1045, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:apacel:v:35:y:2021:i:1:p:49-66. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0818-9935 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0818-9935 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.