Speaker:Minqiang Zhao, Associate Professor (Wang Yanan Institute for Studies in Economics, Xiamen University)
Host:Rui Xu, Assistant Professor (China Institute for Economic Research, Liaoning University)
Guest Introduction:Chao He, Associate Professor (China Institute for Economic Research, Liaoning University)
Time:November 29, 2024 (Friday), 14:45–16:15 (Beijing Time)
Venue:Meeting Room 401, Administration Building, Puhe Campus, Liaoning University
Online Link:Tencent Meeting ID: 358-6417-4104
Language:Chinese/English
Abstract:
This paper examines the role of mobility barriers in shaping the structural transformation of rural and urban China from 1985 to 2010. We document the employment patterns across five sectors: agriculture, rural industry, rural services, urban industry, and urban services. A simple two-region, two-sector model is constructed to illustrate how structural transformation occurs with tradable industries and non-tradable services. We then extend the model to include the agricultural sector and the policy features from Ngai et al. (2019), as well as migration costs. The extended model is calibrated to match key features of the Chinese economy. The model-generated employment shares align well with the actual data, especially for the agriculture, urban industry, and urban services sectors. Our counterfactual experiments reveal that the land policy exerts a more significant effect on rural structural transformation, while the subsidy policy plays a more important role in migration decisions and urban structural transformation. However, neither policy is a major determinant of labor allocation across sectors and regions. Furthermore, we show that technological progress is the main driver of structural transformation in both rural and urban China.
Speaker Bio:
Minqiang Zhao holds a Ph.D. in Economics from The Ohio State University and is currently an Associate Professor at the Wang Yanan Institute for Studies in Economics, Xiamen University. His primary research areas are environmental economics and labor economics. His research has been published in leading academic journals such as theJournal of Environmental Economics and Management,American Journal of Agricultural Economics,Journal of Development Economics,Regional Science and Urban Economics,Labour Economics, andEconomic Quarterly(经济学（季刊）), among others.
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