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The impact of China's WTO accession on internal migration

Author

Listed:
  • Giovanni Facchini

    (University of Nottingham, CEPR, CES-Ifo, CReAM, GEP, and LdA)

  • Maggie Y. Liu

    (Georgetown University)

  • Anna Maria Mayda

    (Georgetown University, CEPR, IZA and LdA)

  • Minghai Zhou

    (University of Nottingham, Ningbo China)

Abstract

In this paper we focus on the changes in internal migration flows triggered by China’s 2001 entry into the World Trade Organization (WTO). We use a difference-in-difference empirical specification based on variation across Chinese prefectures before and after 2001. We relate changes in internal migration rates to the reduction in trade policy uncertainty faced by Chinese exporters to the U.S., as measured by the normal-trade relations (NTR) gap (Handley and Limao 2013, Pierce and Schott 2015). We find that Chinese prefectures facing a larger decline in their average NTR-gap experience a greater increase in internal migration. Our results also show that the impact on skilled and unskilled internal migration rates is consistent with the average skill intensity of export industries of a prefecture.

Suggested Citation

  • Giovanni Facchini & Maggie Y. Liu & Anna Maria Mayda & Minghai Zhou, 2017. "The impact of China's WTO accession on internal migration," Development Working Papers 422, Centro Studi Luca d'Agliano, University of Milano.
    • Handle: RePEc:csl:devewp:422
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    References listed on IDEAS

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    Cited by:

    1. Clement Imbert & Marlon Seror & Yifan Zhang & Yanos Zylberberg, 2022. "Migrants and Firms: Evidence from China," American Economic Review, American Economic Association, vol. 112(6), pages 1885-1914, June.
    2. Zi, Yuan, 2020. "Trade Liberalization and the Great Labor Reallocation," CEPR Discussion Papers 14490, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Immigration Policy; Trade Policy; Political;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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