Premium
Return home and start new businesses: internal migration in China
Author(s) -
Lin Liqiong,
Revindo Mohamad D.,
Gan Christopher,
Nguyen Quang Thi Thieu
Publication year - 2021
Publication title -
asian‐pacific economic literature
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 21
eISSN - 1467-8411
pISSN - 0818-9935
DOI - 10.1111/apel.12314
Subject(s) - urbanization , china , business , work (physics) , demographic economics , internal migration , capital (architecture) , social capital , economic growth , economic geography , development economics , economics , geography , developing country , political science , mechanical engineering , archaeology , law , engineering
Internal migration patterns in China are characterised by rapid urbanisation and cross‐regional movement and more recently by the return of migrants to their native counties. This study investigates the drivers of migrants' permanent return and their likelihood of starting new businesses in their counties of origin. The results suggest that migrants are discouraged from permanent resettlement in urban areas because of family ties and the aspiration to start businesses in their villages of origin. The study also provides evidence that the probability of starting a business upon return is affected by the migrants' accumulation of work experience, business experience, the savings earned while away, financial stability, and the social capital they have in their home counties. The results provide important insights for emerging countries in overcoming rapid urbanisation and imbalanced regional economic growth.