Urbanization and Growth: A Law and Economics Analysis of Migration Patterns in the People's Republic of China

This thesis analyses the topic of rural-to-urban migration in the People’s Republic of China, performing a legal, institutional and economic analysis of this phenomenon. Rural-to-urban migration constitutes an important issue for the Chinese authorities, since in many cities it entails relevant economic and social repercussions. The main goal of this analysis is to shed light on the flaws of the current legal frameworks regulating and affecting rural-to-urban migration, as well as evaluating the final impact exercised by rural migration on the long-term dynamics of urban economic growth. From the analysis, some useful findings emerge. Firstly, most of the legal tools affecting rural-to-urban migration result to be detrimental for rural migrants. Secondly, rural migration has a positive impact on long-run city growth, since rural migrants increase the level of human capital accumulation, and the latter boosts in turn urban economic growth through increases in the level of technology. Thirdly, important growth spillovers emerge at a provincial level for both human and physical capital, although resulting to be more pronounced for physical capital. Overall, it appears that a relaxation of the restrictions on migration imposed by the current hukou system might help increase the magnitude of human capital spillovers, and ultimately its total effect on growth.