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Does Firm Agglomeration Induce Migration? Evidence from Vietnam

Author

Listed:
  • Cuong Viet Nguyen

    (International School, Vietnam National University, Hanoi, Vietnam)

  • Quang Duy Phung

    (Foreign Trade University, Hanoi, Vietnam)

Abstract

This study examines whether the geographical agglomeration of firms affects inter-province migration in Vietnam. We measure firm agglomeration by per capita firm outputs at the province level. We find that the agglomeration of private firms but not stated-owned enterprises and FDI firms has a significant effect on inter-province migration. A one percent increase in private-firm revenue per capita of original provinces reduces the number of out-migrants by 0.075 percent, while a one percent increase in the private-firm revenue per capita of destination provinces increases the number of in-migrants by 0.064 percent. Interestingly, we find a stronger effect of the firm agglomeration on highly-educated people than lowly-educated ones.

Suggested Citation

  • Cuong Viet Nguyen & Quang Duy Phung, 2020. "Does Firm Agglomeration Induce Migration? Evidence from Vietnam," Economics Bulletin, AccessEcon, vol. 40(4), pages 3325-3337.
    • Handle: RePEc:ebl:ecbull:eb-20-01077
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    References listed on IDEAS

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    More about this item

    Keywords

    Firm agglomeration; migration; gravity models; population census; Vietnam;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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