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What Makes a Place Attractive to Chinese Haigui

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What Makes a Place Attractive to Chinese Haigui What Makes a Place Attractive to Chinese Haigui : Behavioral Analysis of the Locational Choices of Highly Educated Chinese Returnees September 2012 Graduate School of Social System Studies The University of Kitakyushu PhD. Dissertation Xue PENG ◎ 2012 by Xue PENG All rights reserved Abstract What Makes a Place Attractive to Chinese Haigui: Behavioral Analysis of the Locational Choices of Highly Educated Chinese Returnees—— By Xue PENG Abstract It is now commonly recognized that creativity is an important driving force in regional economic development. China has lagged behind the “creative economy” prevailing in Western countries, which utilizes people’s creativity. China’s current growth model has relied largely on intensive input of cheap labor and capital, high consumption of energy and natural resources, and caused damage to the natural environment. This growth model has gradually reached a limit and is now believed to be unsustainable. China is in urgent need of an adjustment to the old growth model, which would include a creative strategy to develop industries with higher added value and updated industrial structure. A technology-centered creative strategy would be the right choice for a country such as China, which has a huge supply of labor. For a country on the technological periphery of the world system, an efficient way to catch up has been learning from core nations. China has experienced a large outflow of talented people, who mainly migrate to developed countries for higher education and currently has become one of the largest source country of highly skilled migrants in the world. Once overseas, these talents obtain new knowledge, technologies, and business know-how in developed countries. This huge stock of talented migrants is a resource that China can utilize. Returnee talents, usually called haigui in Chinese have been playing significant roles in China’s mission to be creative. Among others, haigui entrepreneurs are now making vital contributions to create job opportunities and transfer technologies into economic growth. This thesis focuses on talented migrants with study or work backgrounds overseas, and it studies their choice of country and the choice of location inside a country (China). The methods of analysis adopted in this thesis are mainly discrete choice models, which deal with micro data collected from individual samples. The choice of location on the country level concerns the intention to return of overseas Chinese. A survey is conducted the alumni members of Peking University in Japan and respondents are observed for their choice between two options—either to return to China or not to return. In this case, a binary logit model is used. However, the analysis of behavior in choosing a province presents more than two alternatives. The observed samples were required to choose one province among all the whole China. Optional choices are categorized and grouped in appropriate ways in order to simulate the actual choosing situation. Thus, in the analysis of behavior in choosing a province by both general haigui and haigui entrepreneurs, the nested logit model is adopted. The results of choices of country show that the intentions to return of overseas Chinese are negatively related to their age, current income, integration in the host society, and the preference for permanent residence in the host country. Whether to return is a decision a talented migrant tends to make in younger life stages when the income is relatively low and integration to the host society is still weak. If someone stays and builds their career abroad, the intention to return will become weaker as he or she grows old. Interestingly, the expected income gap between host and home country is not significantly related to one’s return intention. Income level in China has increased largely due to the country’s remarkable economic growth, and the income gap compared with developed countries has been narrowed. As a result, the income expectancy in China is now acceptable for overseas Chinese. Thus, in this era, differences in income are not a decisive factor in the intention to return. The advantages of China for overseas Chinese are the social ties in the home country. The necessity of being close to one’s spouse (including a potential future spouse) has made many talented migrants want to return to China. Moreover, the emotional attachments to their relatives and friends in China are compelling for overseas Chinese, thus strengthening their intention to return. This result is consistent with the finding that integration into the host society decreases the intention to return. Becoming accustomed to the social atmosphere is also very important for Chinese Abstract talents. In contrast to the significant positive effect of social connections to return intention, no significant results with amenities were found. Similarly, institutional factors, such as China’s one-child policy and democratic conditions, are found not significantly related. It should be noted that the significance results of the variables are not the same with the direct answer of the respondents. The decision process is too complicated for a decision maker to evaluate every factor objectively and accurately. Through discrete choice approach which focused on the final choice, the biases from stated preference were diminished and the fundamental influential factors were revealed. It is worth noting that overseas talents with long experience abroad and in better-paid positions are usually those with a low intention to return. Meanwhile, the profile of successful haigui entrepreneurs is very similar to those who are reluctant to return. To attract the most creative migrants is a difficult task for the country, as well as for local governments. When they actually get back to China, how do they choose a location in which to settle? General haigui and haigui entrepreneurs show a similarly uneven distribution pattern. Provinces differ largely in the stock of general haigui and haigui entrepreneurs. Developed coastal cities, especially metropolises such as Beijing and Shanghai, have attracted most of the general haigui and haigui entrepreneurs, and the inland provinces are left with very few. Economic reasons are the main cause of the uneven distribution of haigui. Furthermore, economically developed areas are usually accompanied by the features of a creative milieu, such as high talent power, high technology power, and high tolerance. The locational choice of haigui entrepreneurs are found to be affected by high technology power, a dynamic economy, and a big market. Interestingly, among three indicators of technology power, what haigui entrepreneurs are attracted to completely differ from that of general haigui. Haigui Entrepreneurs are affected by R&D investment or the high-tech industry structure, while geneal haigui are more related to the technology outputs (i.e. patents). These findings suggested haigui entrepreneurs brought back technologies or ideas of their own when they returned. What they need is only the support to continue R&D research and to transfer it into marketable products, instead of ready-made technology outputs. Also, social connections matter to haigui entrepreneurs, and different types of connections are ranked in the following order: birthplace > work place > study place. Comparison among the three highly developed coastal provinces showed that social connections are most valuable in the capital of China, Beijing, while Shanghai comes next, and Guangdong the third. By utilizing both personal and locational attributes in the model, this research empirically proves for the first time the relationships between people and place in China. The major academic contribution of this thesis is to test creative class theory about “tolerance” in China. While the distribution of general haigui appears to be related to a tolerant milieu, haigui entrepreneurs behave in a way not affected by it. The conclusion would be that the location choice behaviors of employers in the creative class are different from those of other creative members. It is necessary to distinguish the members playing different roles in economic activities to make effective creative strategies. Other major policy implications of the thesis are about how to attract talents and hence to reduce the regional differences. For the country, laying focus on younger talents who have not settled in host country yet will make policies more efficient. And, utilizing social networks through associations of alumni or fellow-townsmen is a good way to appealing to overseas Chinese talents. On the provincial level, it is not easy to alleviate the huge differences. By increasing R&D investments, enhancing the quality of higher education and encouraging students to study abroad, it is possible to attract more haigui entrepreneurs. At the same time, the governments of inland provinces need to overcome the worship of high degrees and be more open-minded to screen potential business plan based on profitability. Abstract どんな地域が中国人「海帰」人材を呼び寄せるのか ——中国人専門人材の帰国地選択行動の分析—— 学位請求論文要旨 彭 雪 経済学では、地域発展の原動力は人の「創造性」にあると認識されるよう になってきた。「創造」をキーワードとする「創造経済」という発展モデルが 欧米で主流となっている中、中国はいまだに、安価な労働力と資本の大量投 入及びエネルギー・天然資源の過度消費、自然環境へのダメージを特徴とす る旧式の成長モデルに依存している。しかし、この成長モデルは徐々にその 限界に達しており、持続可能ではないと考えられている。中国にとって、従 来の成長モデルを調整し、高付加価値化及び産業構造を高度化する「創造」 的な発展戦略を立ち上げることは急務である。「文化中心」と「技術中心」と いう二種類の創造戦略の中、中国のように膨大な数の労働者を有する国にと っては、現段階において、「技術中心」が正しい選択であろう。しかし、技術 における世界システムから見ると、中国は周辺国であって、中心にある先進 国に比べ、かなりの差がある。キャッチアップする一番効率的な方法は、イ スラエル・台湾・インドなどの地域と国の経験から分かるように先進国に学
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