Market Transition, Government Policies, and Interprovincial Migration in China: 1983-1988

TLDR: A 10% random sample of China 1988 2/1000 Fertility and Birth Control Survey data was analyzed to determine to what extent Chinas transition to a market economy affects migration patterns in the country and to how the government policy of establishing rural enterprises reduced migration from rural areas as mentioned in this paper.

Abstract: A 10% random sample of China 1988 2/1000 Fertility and Birth Control Survey data was analyzed to determine to what extent Chinas transition to a market economy affects migration patterns in the country and to what extent the government policy of establishing rural enterprises reduced migration from rural areas. The survey was conducted by Chinas State Family Planning Commission in July-August 1988 and covered a nationally representative sample of individuals aged 15-64 years at the time of the survey. Data were collected on interprovincial migration trends for all members in the households surveyed. The study findings concerning individual-level characteristics of interprovincial migration during 1983-88 are consistent with previous research in China and in other developing countries. However unique to the findings for China is the effect of province-level characteristics. Individuals are more likely to move out of provinces with a large population and a lower level of economic development. This phenomenon is in line with classic arguments about migration and economic development. Foreign investment slightly reduces migration out of provinces receiving investment with migrants being more likely to choose provinces with high levels of foreign capital investment as destinations. Foreign investment leads to both direct job opportunities and secondary opportunities created by economic growth.