China's "Tidal Wave" of Migrant Labor: What Can We Learn from Mexican Undocumented Migration to the United States? Author(S): Kenneth D

Total Page:16

File Type:pdf, Size:1020Kb

China's China's "Tidal Wave" of Migrant Labor: What Can We Learn from Mexican Undocumented Migration to the United States? Author(s): Kenneth D. Roberts Source: International Migration Review, Vol. 31, No. 2 (Summer, 1997), pp. 249-293 Published by: The Center for Migration Studies of New York, Inc. Stable URL: http://www.jstor.org/stable/2547220 Accessed: 05/10/2010 15:49 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=cmigrations. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. The Center for Migration Studies of New York, Inc. is collaborating with JSTOR to digitize, preserve and extend access to International Migration Review. http://www.jstor.org Chinds "Tidal Wave" Labor: ojMigrant What Can We Learn From Mexican Undocumented to the Migration United States? Kenneth D. Roberts Southwestern University The purpose of this article is to place Chinese labor migration from agriculture within the context of the literature on labor mobility in developing countries by comparing it to undocumented Mexican migra? tion to the United States. The similarities fall within three general areas: the migration process, the economic and social position of migrants at their destination, and the agrarian structure ana process of agricultural development that has perpetuated circular migration. The last section of the article draws upon these similarities, as well as differences between the two countries, to generate predictions concerning the development of labor migration in China. A fifteen-car train arrived in Shanghai from the city of Fuyang in Anhui Province on February14. On board were 2,850 laborersfrom outside the municipality, signaling the beginning of the spring labor influx. Of this group, most were between 20 and 30 years of age, and more than half had never left their home villages before. Most will stay in Shanghai, while others will head to Hangzhou, Wenzhou, Ningbo, and Changshou to seek work The Shanghai Public Security Department alreadyhas prepareda number of vehicles to transportlaborers to other places outside the city, and the Shanghaipolice have strengthened their forces to keep public order. (FBIS, 1994d) One of the positive aspects of China's socialist development period is that it avoided uncontrolled urbanization and its attendant problems, so visible in the cities of many developing countries. While this outcome was based upon a tightly woven and highly effective system that had restricted population mobility since the mid-1950s, it was hoped that the surge in rural prosperity of the early 1980s, the success of rural industry in the mid-1980s, and the policy of encouraging the development of small and medium-sized cities could together represent a unique model of development "with Chinese charac- xAn earlier version of this paper was presented at the annual meetings of the Population Association of America in San Francisco on April 6-8, 1995, and revised for the International Conference on the Flow of Rural Labor in China, held in Beijing June 25-27, 1996. I would like to thank the Brown Foundation for its generous support, and Alice and Sidney Goldstein, Dan Hilliard, Steven McGurk, Ina Rosenthal-Urey, Dorothy Solinger, and an anonymous reviewer for their valuable comments. ?1997 by the Centerfor MigrationStudies of New York.All rightsreserved. 0197-9183/97/3102.0118 IMR Volume 31 Number 2 (Summer 1997): 0249-0293 249 250 International Migration Review teristics . that ensures that our peasants will never repeat the experience of those farmers who during the early stage of capitalism flooded into the cities after going bankrupt" (Fei, 1986:209). Yet, as the above quote from the Chinese press indicates, China is experi? encing a "tidal wave of rural migrant labor" {mingongchao) to its cities. It began in the early 1980s with the loosening of the constraints that had prevented rural Chinese from living in the cities, increased each year until the 1989 economic austerity program reduced urban job opportunities, and picked up with renewed intensity in 1991. Since then, it has grown to an estimated 80 million laborers, making it the largest flow of migrant labor in history. Impossible to ignore in the large cities of China, the phenomenon has grabbed the attention of the foreign press: Newsweek (December 26, 1995) ran an article on Chinas "Nightmare Cities," The Washington /W(October 9,1994) called the phenomenon "The Dragon Within," and the Daily Telegraph (February 24, 1995), in a seerriingly gleeful expression of irony, noted, "forty-five years ago, the Communist stormed into the cities.... Now, they are under siege themselves as - Chinas creaky urban infrastructure and its no less vulnerable social and political order ? start to buckle under the strain of the massive rural influx." While more circumspect, the Chinese press has alternated between expressions of extreme concern and assurances that not only do the benefits provided by rural migrants outweigh their costs, but that new measures are being implemented to better control migration flows. What has been missing in many of these discussions is a context within which to place Chinese migration, with outsiders generally iden? tifying it with the type of rural-urban migrations accompanying the transforma? tions of rural life that occurred throughout Europe or in the American South, and Chinese rarely looking beyond their own borders or immediate experience for parallels from which lessons could be drawn. The purpose of this article is to provide this context for Chinese labor migration by comparing it to undocumented Mexican migration to the United States. Why, of the many types and examples of labor mobility in the developing world, choose this unique case for comparison? There are five bases upon which the validity of the comparison rests. The first, applicable to migration in many developing ? countries, is that the process is predominantly circular, not permanent migrants regularly return to their villages and retain their ties to the land as part of a strategy of spatial and sectoral diversification of household labor. The second is the existence of a very large gap in the wages and standards of living between sending and receiving areas. The large cities of China are relatively as developed (and as foreign) to a Chinese peasant as is the United States to a Mexican migrant worker. The third is that there are restrictions preventing settlement of labor migrants in both Chinese cities and in the United States, ranging from complex systems of work and residence permits to outright illegality. The capriciousness of enforce? ment of these regulations creates an ambiguous status for migrants: their labor is China's Migrant Labor and Mexican Undocumented to the U.S. 251 desired but their presence is not, particularly when it is perceived to impinge upon the privileges of residents. Together, these three factors make the Chinese case more like international labor migration between developing and devel? oped countries than internal migration within developing countries, a similar- ity that has been noted by several scholars (Bonnin and Carrier, 1988; Chan, 1996; Solinger, 1995a). The fourth and fifth similarities make Mexico-U.S. migration a particularly appropriate case for comparison. The fourth is that the proximity between sending and receiving areas allows the process to be spontaneous, not organized as are most labor migrations between developing and developed countries. The fifth concerns the conditions that create surplus labor in agriculture while maintaining migrants' links to the land. Both Mexico and China experienced agrarian-based revolutions that gave land to the peasants that could not be rented or sold. Despite this history, government policy in both has consistently favored the cities at the expense of the peasants, keeping agricultural prices low and subsidizing urban consumption. I will suggest that these and other structural similarities are important in conditioning the response of peasants to agricultural change and to circular migration having emerged as an impor? tant component of the survival strategies of rural households. The example of undocumented migration from Mexico is appealing for two additional reasons. The first is that it was, until the Chinese case, "the largest sustained flow of migrant workers in the contemporary world" (Massey et al.<> 1994:705). Because of this and its direct implications for U.S. immigration policy, it has received a great deal of scholarly attention and generated a large body of literature. The second is that the process is now over three decades old and has matured considerably over its course, so that its long-term dynamics can be explored. After brief descriptions of the magnitude and proximate causes of the upsurge in labor mobility in China, this article explores the similarities and differences between Chinese and Mexican labor migration with regard to the type of agricultural development that has created and perpetuated circular migration, the migration process, including household strategies and networks, and the economic and social position of migrants in their destinations.
Recommended publications
  • Circular Migration Or Permanent Return: What Determines Different Forms of Migration?
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Vadean, Florin P.; Piracha, Matloob Working Paper Circular migration or permanent return: What determines different forms of migration? Department of Economics Discussion Paper, No. 09,12 Provided in Cooperation with: University of Kent, School of Economics Suggested Citation: Vadean, Florin P.; Piracha, Matloob (2009) : Circular migration or permanent return: What determines different forms of migration?, Department of Economics Discussion Paper, No. 09,12, University of Kent, Department of Economics, Canterbury This Version is available at: http://hdl.handle.net/10419/50588 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu University of Kent Department of Economics Discussion Papers Circular Migration or Permanent Return: What Determines Different Forms of Migration? Florin P.
    [Show full text]
  • Rural-Urban Migration in China
    Internal Labor Migration in China: Trends, Geographical Distribution and Policies Kam Wing Chan Department of Geography University of Washington Seattle [email protected] January 2008 Wuhan: Share of Migrant Workers (Non-Hukou) (2000 Census Data) Industry % of employment in that industry Manufacturing 43 Construction 56 Social Services 50 Real Estate and Housing 40 Wuhan City (7 city districts) 46 Urban recreation consumption rose at 14% p.a in 1995-2005 Topics • Hukou System and Migration Statistics • Migration Trends • Geography •Policies (The Household Registration System, 户口制度) • Formally set up in 1958 • Divided population/society into two major types of households: rural and urban • Differential treatments of rural and urban residents • Controlled by the police and other govt departments • Basically an “internal passport system” • Currently, the system serves as a benefit eligibility system; a tool of institutional exclusion than controlling geographical mobility • The population of a city is divided into “local” and “outside” population. Ad MIGRANT CHILDREN FALL THROUGH THE CRACKS An unlicensed school in Beijing Two types of internal migrants • Hukou Migrants: migrants with local residency rights • Non-hukou Migrant: migrants without local residency rights – also called: non-hukou population, or more generally, “floating population” Wuhan: Share of Non-Hukou Migrant Workers (2000 Census Data) Industry % of Employment Manufacturing 43 Construction 56 Social Services 50 Real Estate and Housing 40 Wuhan City (7 city districts)
    [Show full text]
  • China's Urbanization, Social Restructure and Public
    Graduate Journal of Asia-Pacific Studies 9:1 (2014) 55-77 Articles China’s Urbanization, Social Restructure and Public Administration Reforms: An Overview Xiaoyuan Wan University of Sheffield [email protected] Abstract This paper provides a review of the broad process of China’s urbanization and the urban public administration reform since the 1978 reforms, with a focus on the changing public policies in the realms of employment, housing, social insurance and the devolution of government authority. It suggests that the main government rationale of the public administration system reforms was to hand over a part of public services which used to be delivered by the central government and state-owned enterprises (SOEs), to local governments and to devolve a part of responsibility to the private sector, the social sector and individuals. According to these reforms, most of the social services, which could only be enjoyed by the employees of the SOEs were handed over to grassroots governments and aimed to cover more urban population. But at the same time, individuals had to take on more responsibilities of their careers choice and fund part of their own social welfare. This paper concludes by suggesting that with proliferating literature on China’s social and economic transition, further study should be carried out to explore the implementation of the reformed urban public policies by local governments and special concern should be given to the participation of non-government actors in China’s public administration. Introduction SINCE THE LATE 1970S, a series of economic reforms have been driving China to step away from a rigid socialism to a more open and diverse society, in which the urban economy developed at a tremendous speed and played an increasingly important role in the national economy.
    [Show full text]
  • “Great Migration”: the Impact of the Reduction in Trade Policy Uncertainty
    DISCUSSION PAPER SERIES IZA DP No. 11279 China’s “Great Migration”: The Impact of the Reduction in Trade Policy Uncertainty Giovanni Facchini Maggie Y. Liu Anna Maria Mayda Minghai Zhou JANUARY 2018 DISCUSSION PAPER SERIES IZA DP No. 11279 China’s “Great Migration”: The Impact of the Reduction in Trade Policy Uncertainty Giovanni Facchini University of Nottingham, University of Milan, CEPR, CESifo, CReAM, GEP, IZA and LdA Maggie Y. Liu Smith College Anna Maria Mayda Georgetown University, CEPR, IZA and LdA Minghai Zhou University of Nottingham, Ningbo China JANUARY 2018 Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world’s largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. IZA – Institute of Labor Economics Schaumburg-Lippe-Straße 5–9 Phone: +49-228-3894-0 53113 Bonn, Germany Email: [email protected] www.iza.org IZA DP No.
    [Show full text]
  • Mediterranean Crossroads: Determinants of Circular Migration in Spain, 1955-19731 March 19, 2021 José Antonio García-Barrero2
    Mediterranean Crossroads: Determinants of circular migration in Spain, 1955-19731 March 19, 2021 José Antonio García-Barrero2 Abstract In this paper, I study the determinants of circular migration in Spain during the rural exodus, 1955-1973. I use a unique and novel employer-employee micro-dataset of 10,761 observations of men and women working in the Balearic tourism industry during the period. The Spanish tourism boom in the Balearics constitutes an intense process of migrant assimilation based on circular migration. This case study allows me to analyse the factors explaining circular migration in Spain and shed light on the migrant location choice during the Spanish rural exodus. My results show that the socio-economic structure of the origin communities, skill requirements and migrant networks were key predictors of location choices. Migrants were more likely to migrate from rural towns where the labour demand peaks were complementary to the tourism season. These municipalities also characterised by more accessible and distributed land ownership. By contrast, migrant networks were crucial in determining migrant location choices in the areas where the levels of attachment to the source area were lower. Moreover, my findings also suggest abrupt adverse shocks in labour demand and lower literacy and disposable household income in the municipality of origin were strong predictors. These differential incentives played an important role in the heterogeneity of migrant location choices during the Spanish rural exodus. In these areas, higher investment and seasonal work opportunities in origin, and lower skill requirements and migrant networks in destination made more optimal migrating to Spanish tourism areas to the detriment of European countries and Spanish industrial hubs.
    [Show full text]
  • (IOM) (2019) World Migration Report 2020
    WORLD MIGRATION REPORT 2020 The opinions expressed in the report are those of the authors and do not necessarily reflect the views of the International Organization for Migration (IOM). The designations employed and the presentation of material throughout the report do not imply the expression of any opinion whatsoever on the part of IOM concerning the legal status of any country, territory, city or area, or of its authorities, or concerning its frontiers or boundaries. IOM is committed to the principle that humane and orderly migration benefits migrants and society. As an intergovernmental organization, IOM acts with its partners in the international community to: assist in meeting the operational challenges of migration; advance understanding of migration issues; encourage social and economic development through migration; and uphold the human dignity and well-being of migrants. This flagship World Migration Report has been produced in line with IOM’s Environment Policy and is available online only. Printed hard copies have not been made in order to reduce paper, printing and transportation impacts. The report is available for free download at www.iom.int/wmr. Publisher: International Organization for Migration 17 route des Morillons P.O. Box 17 1211 Geneva 19 Switzerland Tel.: +41 22 717 9111 Fax: +41 22 798 6150 Email: [email protected] Website: www.iom.int ISSN 1561-5502 e-ISBN 978-92-9068-789-4 Cover photos Top: Children from Taro island carry lighter items from IOM’s delivery of food aid funded by USAID, with transport support from the United Nations. © IOM 2013/Joe LOWRY Middle: Rice fields in Southern Bangladesh.
    [Show full text]
  • Driving Factors of Rural-Urban Migration in China
    Driving Factors of Rural-Urban Migration in China Grace Melo1 and Glenn C.W. Ames2 1Corresponding author and PhD student, Department of Agricultural & Applied Economics, University of Georgia, Athens, GA ([email protected]) 2Professor Emeritus, Department of Agricultural & Applied Economics, University of Georgia, Athens, GA ([email protected]) Selected Paper prepared for presentation at the 2016 Agricultural & Applied Economics Association Annual Meeting, Boston, Massachusetts, July 31-August 2 Copyright 2016 by Melo and Ames. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. i Abstract This study employs panel data to analyze the economic factors that drive rural-urban migration and agricultural labor supply within China. The results indicate that higher wages in urban areas, especially in the construction sector, was associated with rural-urban migration and a decline in the agricultural labor supply. The rural-urban wage differential in construction reflects the housing boom in cities set off by rapid urbanization and government policies. Most importantly, our findings raise concerns about the negative impact of rural-urban migration on agriculture in China. Policies that impact labor supply, especially in times of rapid urban development and low diffusion of agricultural technology, are critical to Chinese economic development and stability. Keywords: Internal migration, agricultural labor JEL Classification: O15, R23, J43 i 1. Introduction Population growth in Chinese metropolitan areas is partly attributed to massive migration from rural to urban areas. The number of urban residents increased by 14 million people, while the number of rural residents dropped by 7 million during the 2008-2014 period (National Bureau of Statistics of China 2014).
    [Show full text]
  • Migration in the People's Republic of China
    ADBI Working Paper Series Migration in the People’s Republic of China Ming Lu and Yiran Xia No. 593 September 2016 Asian Development Bank Institute Ming Lu is a professor of economics at Shanghai Jiao Tong University and Fudan University. Yiran Xia is an associate professor of economics at Wenzhou University. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. Working papers are subject to formal revision and correction before they are finalized and considered published. The Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI’s working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. Suggested citation: Lu, M., and Y. Xia. 2016. Migration in the People’s Republic of China. ADBI Working Paper 593. Tokyo: Asian Development Bank Institute. Available: https://www.adb.org/publications/migration-people-republic-china/ Please contact the authors for information about this paper. Email: [email protected], [email protected] Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan Tel: +81-3-3593-5500 Fax: +81-3-3593-5571 URL: www.adbi.org E-mail: [email protected] © 2016 Asian Development Bank Institute ADBI Working Paper 593 Lu and Xia Abstract This report summarizes the characteristics of migration in the People’s Republic of China (PRC) after its reforms and opening up.
    [Show full text]
  • LOCATION of CONFERENCE HALL Robertson Hall, Princeton, NJ 08540
    LOCATION OF CONFERENCE HALL Robertson Hall, Princeton, NJ 08540 Page 1 of 19 LOCATION OF MEETING VENUES Page 2 of 19 CONFERENCE COMMITTEE President Xiaogang Wu (Hong Kong University of Science and Technology, HKSAR) Co-sponsor Yu Xie (Princeton University, USA) Members Hua-Yu Sebastian Cherng (New York University, USA) Qiang Fu (The University of British Columbia, CANADA) Reza Hasmath (University of Alberta, CANADA) Anning Hu (Fudan University, Mainland CHINA) Li-Chung Hu (National Chengchi University, TAIWAN) Yingchun Ji (Shanghai University, MAINLAND CHINA) Yingyi Ma (Syracuse University, USA) Lijun Song (Vanderbilt University, USA) Jun Xu (Ball State University, USA) Wei-hsin Yu (University of Maryland, USA) Amy Tsang (Harvard University, USA, Student representative) CONFERENCE SECRETARIAT Duoduo Xu (Hong Kong University of Science and Technology, HKSAR) Phillip Rush (Princeton University, USA) Shaoping Echo She (Hong Kong University of Science and Technology, HKSAR) Page 3 of 19 ORGANIZERS Page 4 of 19 PROGRAMME OUTLINE Friday August 10th 2018 Time Details Venue Bernstein 8:30 – 9:30 Registration and Reception Gallery Opening Speech 9:30 – 10:00 Bowl 016 by Prof. Yu Xie & Prof. Xiaogang Wu Bernstein 10:00 – 10:30 Coffee Break and Group Photo Taking Gallery Parallel Sessions 1.1 Big Data and Deep Learning Bowl 016 1.2 Education and Schooling Bowl 001 10:30 – 12:00 1.3 Gender Norms and Attitudes Bowl 002 (90 min’) 1.4 Migrants and Immigrants Rm. 005 1.5 Family and Domestic Labor Rm. 023 1.6 Governance and Civil Society Rm. 029 1.7 Hospitals, Patients and Medicine Rm. 035 Bernstein 12:00 – 13:20 Lunch Gallery Parallel Sessions 2.1 Marriage and Assortative Mating Bowl 016 2.2 Gender Inequality Bowl 001 13:20 – 14:50 2.3 Intergenerational Transfer and Relation Bowl 002 (90 min’) 2.4 Mental Health and Subjective Well-being Rm.
    [Show full text]
  • IN SEARCH of NEW OPPORTUNITIES Circular Migration Between Belarus and Poland, Slovakia and the Czech Republic – State of Play and Prospects for Cooperation
    IN SEARCH OF NEW OPPORTUNITIES Circular migration between Belarus and Poland, Slovakia and the Czech Republic – state of play and prospects for cooperation Edited by Agnieszka Kulesa and Piotr Kaźmierkiewicz With contributions from Ivan Lichner, Šárka Prát, Marek Radvanský and Andrei Yeliseyeu © CASE – Center for Social and Economic Research, Warsaw 2021 Graphic design: Differ Designs Tomasz Mostowski ISBN: 978-83-7178-705-8 (print), 978-83-7178-706-5 (online) Publisher CASE – Center for Social and Economic Research Al. Jana Pawła II 61/212 01-031 Warsaw Poland tel. +48 222 062 900 [email protected] www.case-research.eu This publication was developed in the frame of the project “CIRCMIGR: Improving circular migration between Belarus and Poland, Slovakia and Czechia” (Standard Grant Agreement no. 21930098) co-fi- nanced by the Governments of Czechia, Hungary, Poland and Slovakia through Visegrad Grants from International Visegrad Fund. The mission of the fund is to advance ideas for sustainable regional cooperation in Central Europe. Partners IN SEARCH OF NEW OPPORTUNITIES Circular migration between Belarus and Poland, Slovakia and the Czech Republic – state of play and prospects for cooperation Edited by Agnieszka Kulesa and Piotr Kaźmierkiewicz With contributions from Ivan Lichner, Šárka Prát, Marek Radvanský and Andrei Yeliseyeu CASE CASE – Center for Social and Economic Research is an independent, non-profit research institute founded on the idea that research-based policy-making is vital for the economic welfare of societies. Established in Warsaw in 1991, CASE today is recognized as the top think tank in Central and Eastern Europe and is one of the most highly regarded think tanks internationally.
    [Show full text]
  • Trade Liberalization and Economic Development: Evidence from China’S WTO Accession⇤
    Trade Liberalization and Economic Development: Evidence from China’s WTO Accession⇤ Wenya Cheng1 and Andrei Potlogea2 1University of Manchester 2Universitat Pompeu Fabra November 12, 2015 For the Latest Version Click here JOB MARKET PAPER Abstract We study the e↵ect of improvements in foreign market access brought by China’s WTO accession on Chinese local economies. We exploit cross-city variation in these improvements stemming from initial di↵erences in sectoral specialization and exogenous cross-industry di↵erences in US trade liberalization that originate from the elimination of the threat of a return to Smoot-Hawley tari↵s for Chinese imports. We find that Chinese cities that experience greater improvement in their access to US markets following WTO accession ex- hibit faster population, output and employment growth as well as increased investment and FDI inflows. The benefits of WTO membership for Chinese local economies are augmented by significant local spillovers. These spillovers operate both from the tradable to the non- tradable sector and within the tradable sector. Within the tradable sector, spillovers are transmitted primarily via labor market linkages. We find important local demand linkages from the tradable to the nontradable sector. Most local service sectors benefit from trade liberalization. In particular, our evidence suggests that increased investment demand caused by trade liberalization drives financial sector growth. We find little e↵ect of trade liberal- ization on local wages. Alongside our results on population and employment, this indicates that local labor supply elasticities are high in our setting. Our findings can be explained by a Lewis model of urbanization that combines geographic mobility with an abundant reserve of labor.
    [Show full text]
  • Temporary and Circular Migration: the Egyption Case
    TEMPORARY AND CIRCULAR MIGRATION: THE EGYPTION CASE Heba Nassar CARIM Analytic and Synthetic Notes 2008/09 Circular Migration Series Demographic and Economic Module Cooperation project on the social integration of immigrants, migration, and the movement of persons (CARIM) Co-financed by the European University Institute and the European Union (AENEAS Programme) CARIM Euro-Mediterranean Consortium for Applied Research on International Migration Analytic and Synthetic Notes – Circular Migration Series Demographic and Economic Module CARIM-AS 2008/09 Temporary and Circular Migration: The Egyptian Case Heba Nassar Professor of Economics and Head of the Economic Department, Cairo University This publication is part of a series of papers on Circular Migration written in the framework of the CARIM project, and presented at two meetings organised by CARIM in Florence: The Role of Circular Migration in the Euro-Mediterranean Area (17 - 19 October 2007), and Circular Migration: Experiences, Opportunities and Constraints for Southern and Eastern Mediterranean Countries (28 - 29 January 2008). Please follow this link to access all papers on Circular Migration: www.carim.org/circularmigration © 2008, European University Institute Robert Schuman Centre for Advanced Studies This text may be downloaded only for personal research purposes. Any additional reproduction for other purposes, whether in hard copies or electronically, requires the consent of the Robert Schuman Centre for Advanced Studies. Requests should be addressed to [email protected] If cited or quoted, reference should be made as follows: [Full name of the author(s)], [title], CARIM AS [series number], Robert Schuman Centre for Advanced Studies, San Domenico di Fiesole (FI):European University Institute, [year of publication].
    [Show full text]