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The Motive Mechanism of Urbanization in China

Author: ChuDePing
Tutor: WeiLongBao
School: Zhejiang University
Course: Agricultural Economics and Management
Keywords: Urbanization Population Migration Enterprises Relocation MigrationIntentions Industrialization Modernization of Agriculture Chinese Three LargeRegion
CLC: F299.21
Type: PhD thesis
Year: 2014
Downloads: 38
Quote: 0
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In the process of urbanization, Peasants are the basic factor from the view of microeconomics. Whether Farmers are willing to migrate to cities or not is the key of acceleration of Chinese rural urbanization. And, rural entrepreneurs, special groups of the farmers, whether they voluntarily relocate their enterprises will have a significant impact on the urbanization as well.This paper researched on current residents and enterprises in rural area, with the field data of three provinces of Henan, Sichuan, Zhejiang and10counties (Chang’an in Shanxi province; Shouguang in Shandong; Wuchuan in Inner Mongolia; Yantan in Sichuan; Huainan in Anhui; Qionghai in Hainan; Qiqihar in Heilongjiang; Wuxing in Zhejiang; Ruichang in Jiangxi and Mae Tam in Guizhou). Had received samples from1325unmigrated farmers;960migrated farmers;1981farmers’employment intention;105staying enterprises; and88relocated enterprises, the paper adopted cost-benefit analysis method, set up the measuring model, binary Logistic model, binary choice Probit model and multivariate Logistic model. In addition, the paper used panel data of171countries by the World Bank public database, built the DSR theory of urbanization development model and binary Logistic model to do the empirical analysis. From macroscopic view and microscopic perspective, with theoretical and empirical perspective, the thesis identified six key problems in the development of Chinese rural urbanization:(1) How the industrialization and modernization of agriculture would affect urbanization developments?(2) What factors would influence the intention of the migration for the farmers?(3) What factors would influence the intention to continue the migration for migrated farmers?(4) What are the motivation and influence factors of farmers’employment intention?(5) What factors would influence the intention to relocate staying enterprises?(6) What factors would influence the intention to continue the relocation for relocated enterprises?The main conclusions of this article are from the answers of the six questions above: (1) Industrialization and modernization of Agriculture has positive significant relationship with rural urbanization. Agricultural industrialization and modernization plays positive role in the development of urbanization. That is to say, Industrialization urbanization and agricultural modernization are coordinated with each others. It is important that urbanization synchronized industrialization and agricultural modernization.(2) Age, numbers of students in the family, household registration policy, years of the education, annual income of the Family and working years as migrated workers had a significant impact on the migration of staying farmers. There are significant differences in Zhejiang, Sichuan and Henan. Such as:Due to city education costs make education quality less attractive to farmers and education discrimination of migrated farmers, would make the family with many students less intention to move. Although the household registration policy has unregulated to some extent, there is still an impact on urbanization. The current household registration system brought farmers as much welfare as barrier. So the household registration policy will have a significant negative impact on migrated farmers. Working years as migrated workers variable is not significant in all provinces, in limited provinces, this variable shows otherwise due to the longer the working years, it is more likely for migrated farmers to obtain relatively stable job in the city, have more chance to adapt city life and gradually establish their own" life".(3) Age, number of students in the family, annual income of the Family and working years as migrated workers had resulted in different degrees of influences on the migrated farmers’intention of continuing moving and had significant regional differences. Such as:Aging has a significant negative impact on intention of continuing moving of migrated farmers’, so the government might reform endowment insurance in China. The variables significances and symbol direction of Sichuan and Henan are basically identical with collected samples of three provinces. The variable of number of students in the family have a significant negative impact in Zhejiang, while have a significant positive impact in Henan, which may be reflected the satisfaction of local education. (4) The main influence factors of staying farmers’ employment behavior included Age, number of students in the family, area of Farmland owned, gender, numbers of villages in the around area, whether the villages they stayed is model villages. For example, the older the farmers are, the greater chance for them to be engaged in farming work, they have no ability and willing to move into cities because of physical conditions, which also very consistent with other empirical researches; Stay-at-home children, who face quite a lot of problems physically and emotionally, definitely are the "chains" to pull back the migrated workers. And bigger size of villages may give more employment opportunities, so the size of villages significantly influence on farmers’ employment intention.(5) Total assets, land price, transportation cost, business environment, tax policy and government relations had great influence on the intention to relocate for staying enterprises. In the starting stage, the enterprises normally have close relationship with the local government. With rapid development, many small and medium-sized business have to escape from this relationship and move to other places. Relations with the local government will have a negative effect on rural enterprise relocation intention. There is a negative correlation relationship between Land prices and enterprises relocation intention, which also explained why a lot of small and medium-sized enterprises moved to the Midwest from coastal developed areas. As the companies grow, the cities have better business environment. The new emerging enterprises are specially focused on business environment. Business environment would have negative impact on enterprise relocation intention. Some research also got similar conclusions.(6) Business types, Land price and police and business environment had great influence on the intention to continue the relocation for relocated enterprises. Business types would have negative impact on the intention to continue the relocation for relocated enterprises, which inspires the local governments’ decisions on moving in enterprises types. Land prices and business environment have a positive impact for relocation enterprises, which is just as opposed for the staying enterprises. The better business environment and the more favorable land price make the smaller possibility for enterprise to move back, which is similar to some researchers’view.Overall, combined theoretical and empirical research, this thesis analyzed the rural microeconomic foundation of development mechanism of urbanization in China, from the perspective of different migration groups or remigration groups. In this paper, some classic theories applies to broader scopes:First of all, the thesis built cost-benefit theory model through Schultz human capital thoughts, and adopted the binary Logistic model to do an overall and regression analyze of three typical the east, west and central provinces in China. Based on the relative theory of farmers back to hometown and the binary Logistic model, the paper explained the factors why the migrated farmers continued to resettled by regression analysis, and gave an empirical analysis with the multivariate orderly Logistic model of the migrated farmers and staying farmers. Secondly, based on the related theory of labor resettlement and Probit model, the paper empirical analyzed the motivation and influence factors for the rural staying farmers employment intention. Finally, with the enterprise relocation theory and binary Logistic model, the paper gave an empirical analysis of staying enterprise’intention of relocation. Based on the theory of enterprise return and multivariate orderly Logistic model, the paper analyzed the motivation and influence factors for relocated enterprises and staying enterprises.

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CLC: > Economic > Economic planning and management > Urban and municipal economy > Municipal economic profiles of countries in the world cities > China > The formation and development of cities and towns
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