Trade, Migration, and Productivity: A Quantitative Analysis of China
By Trevor Tombe, Xiaodong Zhu. The American Economic Review, 2019
514 citations recorded by the source corpus.
We study how goods- and labor-market frictions affect aggregate labor productivity in China. Combining unique data with a general equilibrium model of internal and international trade, and migration across regions and sectors, we quantify the magnitude and consequences of trade and migration costs. The costs were high in 2000, but declined afterward. The decline accounts for 36 percent of the aggregate labor productivity growth between 2000 and 2005. Reductions in internal trade and migration costs are more important than reductions in external trade costs. Despite the decline, migration costs are still high and potential gains from further reform are large. (JEL E24, F16, J24, P23, P25, R12, R23)
Subfields: Economics and Econometrics, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/4ea97a6f2f68703b961a860b776c90ecf9f48253
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In Economics and Econometrics
- Matthew A. Turner
- Nathaniel Baum-Snow
- Gilles Duranton
- Qinghua Zhang
- J. Henderson
- Zhi Wang
- Li-an Zhou
- L. Brandt
In Sociology and Political Science
Citations in the corpus
- Career Incentives of City Leaders and Urban Spatial Expansion in China (2020, background): “At the same time, migration costs across Chinese cities (and especially across provinces) remain high (Tombe & Zhu, 2019; Henderson et al. 2018). includes all other commodities.”
- The Aggregate Productivity Effects of Internal Migration: Evidence from Indonesia (2017, unknown): “OurframeworkissimilartothatusedinworkbyTombeandZhu(2019).”
- Does investment in national highways help or hurt hinterland city growth? (2018, background): “11 Evidence in Table A4 Panel B contravenes this prediction. Domestic market access effects are zero to negative whereas external market access effects are universally positive. In China, the hukou system is known to constrain mobility. In Baum-Snow et al (2016), following Redding (2016) and Balboni”
- The Day After Tomorrow: Evaluating the Burden of Trump's Trade War* (2018, background): “A few recent studies have introduced labor migration into the EK framework and explored the impact of goods and labor market frictions on economic growth and gain from trade (Galle et al., 2015; Caliendo et al., 2015; Tombe and Zhu, 2015).”