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Household Investment through migration in Rural China

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Abstract

In this paper, we strive to better understand how household investment is affected by participation in migration in rural China. After we describe investment patterns across different regions of rural China, we use a theoretical model to describe a relationship between migration and investment and to generate hypotheses about the relationship consistent with our descriptive findings. We test the hypotheses using household data collected in rural China in 2000 and find that in poorer areas migration increases consumptive investment by nearly 20 percent. We find no evidence of a link between migration and productive investment.

Suggested Citation

  • Alan de Brauw & Scott Rozelle, 2003. "Household Investment through migration in Rural China," Department of Economics Working Papers 2003-01, Department of Economics, Williams College.
    • Handle: RePEc:wil:wileco:2003-01
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    Cited by:

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    2. Marco Stampini & Benjamin Davis, 2009. "Does nonagricultural labor relax farmers’ credit constraints? Evidence from longitudinal data for Vietnam," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 177-188, March.
    3. Slobodan Djajic & Michael S. Michael, 2009. "Temporary Migration Policies and Welfare of the Host and Source Countries: A Game-Theoretic Approach," CESifo Working Paper Series 2811, CESifo.

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    More about this item

    Keywords

    China; migration; development; household investment; dynamic panel data;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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