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Social-Capital Mobilization and Income Returns to Entrepreneurship: The Case of Return Migration in Rural China

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  • Zhongdong Ma

    (Division of Social Science, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong)

Abstract

Temporary labor migration in developing countries is an important urban–rural linkage that has a potential impact on rural development. According to the new economies of labor migration, it is often a strategy used by families with small farms to acquire investment capital for future business formation. In this paper, I argue further that human-capital accretion during migration reinforces the mobilization of local social capital, which in turn enhances a returnee's entrepreneurship. By using the results of an in-depth survey of returned labor migrants in rural China, I seek to explain the mobilization of social capital and income return to entrepreneurship in a multivariate framework. I find that skilled returnees are indeed more prone to mobilize social capital. The income return to local social capital is as considerable as that to investment capital and skills acquired at the urban destination. The findings suggest that the consequences of labor migration can be better understood through the integration of the new economics of labor migration and social capital

Suggested Citation

  • Zhongdong Ma, 2002. "Social-Capital Mobilization and Income Returns to Entrepreneurship: The Case of Return Migration in Rural China," Environment and Planning A, , vol. 34(10), pages 1763-1784, October.
    • Handle: RePEc:sae:envira:v:34:y:2002:i:10:p:1763-1784
    DOI: 10.1068/a34193
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    References listed on IDEAS

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    1. C Cindy Fan, 2001. "Migration and Labor-Market Returns in Urban China: Results from a Recent Survey in Guangzhou," Environment and Planning A, , vol. 33(3), pages 479-508, March.
    2. Zhongdong Ma, 2001. "Urban Labour-Force Experience as a Determinant of Rural Occupation Change: Evidence from Recent Urban-Rural Return Migration in China," Environment and Planning A, , vol. 33(2), pages 237-255, February.
    3. Zhongdong Ma & Kao-Lee Liaw, 1997. "Explaining hierarchical and interprovincial migrations of Chinese young adults by personal factors and place attributes: A nested logit analysis," Mathematical Population Studies, Taylor & Francis Journals, vol. 6(3), pages 217-239.
    4. Xiushi Yang, 2000. "Determinants of Migration Intentions in Hubei Province, China: Individual versus Family Migration," Environment and Planning A, , vol. 32(5), pages 769-787, May.
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    Cited by:

    1. Thomas Gries & Manfred Kraft & Manuel Simon, 2016. "Explaining inter-provincial migration in China," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 709-731, November.

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