Return home and start new businesses: internal migration in China

Liqiong Lin, Mohamad D. Revindo, Christopher Gan, Quang Thi Thieu Nguyen

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)49-66
Number of pages18
JournalAsian-Pacific Economic Literature
Volume35
Issue number1
DOIs
Publication statusPublished - May 2021

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