Labor Transfer in Emerging Economies: A Perspective from China’s Reality to Theories PDF
Preview Labor Transfer in Emerging Economies: A Perspective from China’s Reality to Theories
New Frontiers in Regional Science: Asian Perspectives 12 Xiaochun Li Editor Labor Transfer in Emerging Economies A Perspective from China’s Reality to Theories New Frontiers in Regional Science: Asian Perspectives Volume 12 EditorinChief YoshiroHigano,UniversityofTsukuba ManagingEditors MakotoTawada(GeneralManagingEditor),AichiGakuinUniversity KiyokoHagihara,BukkyoUniversity LilyKiminami,NiigataUniversity EditorialBoard SakaiYasuhiro(AdvisorChiefJapan),ShigaUniversity YasuhideOkuyama,UniversityofKitakyushu ZhengWang,ChineseAcademyofSciences YuzuruMiyata,ToyohashiUniversityofTechnology HiroyukiShibusawa,ToyohashiUniversityofTechnology SaburoSaito,FukuokaUniversity MakotoOkamura,HiroshimaUniversity MorikiHosoe,KumamotoGakuenUniversity BudyPrasetyoResosudarmo,CrawfordSchoolofPublicPolicy,ANU Shin-KunPeng,AcademiaSinica GeoffreyJohnDennisHewings,UniversityofIllinois EuijuneKim,SeoulNationalUniversity SrijitMishra,IndiraGandhiInstituteofDevelopmentResearch AmitrajeetA.Batabyal,RochesterInstituteofTechnology YizhiWang,ShanghaiAcademyofSocialSciences DanielShefer,Technion-IsraelInstituteofTechnology AkiraKiminami,TheUniversityofTokyo AdvisoryBoard PeterNijkamp(Chair,ExOfficioMemberofEditorialBoard),TinbergenInstitute RachelS.Franklin,BrownUniversity MarkD.Partridge,OhioStateUniversity JacquesPoot,UniversityofWaikato AuraReggiani,UniversityofBologna New Frontiers in Regional Science: Asian Perspectives Thisseriesisaconstellationofworksbyscholarsinthefieldofregionalscienceand inrelateddisciplinesspecificallyfocusingondynamisminAsia. Asia is the mostdynamic part ofthe world.Japan, Korea, Taiwan, and Singapore experiencedrapidandmiracleeconomicgrowthinthe1970s.Malaysia,Indonesia, and Thailand followed in the 1980s. China, India, and Vietnam are now rising countries in Asia and are even leading the world economy. Due to their rapid economic development and growth, Asian countries continue to face a variety of urgentissuesincludingregionalandinstitutionalunbalancedgrowth,environmen- tal problems, poverty amidst prosperity, an ageing society, the collapse of the bubbleeconomy,anddeflation,amongothers. Asian countries are diversified as they have their own cultural, historical, and geographicalaswellaspoliticalconditions.Duetothisfact,scholarsspecializing in regional science as an inter- and multi-discipline have taken leading roles in providingmitigatingpolicyproposalsbasedonrobustinterdisciplinaryanalysisof multifacetedregionalissuesandsubjectsinAsia.Thisseriesnotonlywillpresent unique research results from Asia that are unfamiliar in other parts of the world becauseoflanguagebarriers,butalsowillpublishadvancedresearchresultsfrom thoseregionsthathavefocusedonregionalandurbanissuesinAsiafromdifferent perspectives. The series aims to expand the frontiers of regional science through diffusion of intrinsically developed and advanced modern regional science methodologies in Asiaandotherareasoftheworld.Readerswillbeinspiredtorealizethatregional andurbanissuesintheworldaresovastthattheirestablishedmethodologiesstill have space for development and refinement, and to understand the importance of the interdisciplinary and multidisciplinary approach that is inherent in regional scienceforanalyzingandresolvingurgentregionalandurbanissuesinAsia. Topics under consideration in this series include the theory of social cost and benefit analysis and criteria of public investments, socio-economic vulnerability against disasters, food security and policy, agro-food systems in China, industrial clusteringinAsia,comprehensivemanagementofwaterenvironmentandresources inariverbasin,theinternationaltradeblocandfoodsecurity,migrationandlabor marketinAsia,landpolicyandlocalpropertytax,InformationandCommunication Technology planning, consumer “shop-around” movements, and regeneration of downtowns,amongothers. More information about this series at http://www.springer.com/series/13039 Xiaochun Li Editor Labor Transfer in Emerging Economies ’ A Perspective from China s Reality to Theories Editor XiaochunLi BusinessSchool NanjingUniversity Nanjing,China ISSN2199-5974 ISSN2199-5982 (electronic) NewFrontiersinRegionalScience:AsianPerspectives ISBN978-981-10-3568-5 ISBN978-981-10-3569-2 (eBook) DOI10.1007/978-981-10-3569-2 LibraryofCongressControlNumber:2016963170 ©SpringerNatureSingaporePteLtd.2017 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. 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The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore Contents 1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 XiaochunLi PartI HumanCapital 2 EconomicAnalysisontheUrban–RuralDisparityinHuman CapitalinChina. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 XiaochunLiandXiaoyingQian 3 EconomicandEnvironmentalEffectsofRural-Urban MigrantTraining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 XiaochunLiandYuZhou 4 MinimumWageonMigrantWorkersandItsEmployment Effect:ACaseStudyoftheYangtzeRiverDeltaRegion beforeandaftertheFinancialCrisis. . . . . . . . . . . . . . . . . . . . . . . . 57 XiaochunLi,PingHe,YuZhou,andZheyuDong PartII MigrantsRemittances 5 AnEconomicAnalysisofRemittanceofUnskilledMigration onSkilled–UnskilledWageInequalityinLaborHostRegion. . . . . 85 XiaochunLiandYuZhou 6 TheImpactsofRural–UrbanMigrants’Remittances ontheUrbanEconomy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 XiaochunLiandDianshuangWang PartIII EnvironmentalProtection 7 EnvironmentalEffectsofRemittanceofRural–Urban Migrant.. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . .. . . 113 XiaochunLiandJingZhou v vi Contents 8 EnvironmentandLaborMovementofSkilledLabor andUnskilledLaborBetweenSectors. . . . . . . . . . . . . . . . . . . . . . . 131 XiaochunLi,YuantingXu,andDianshuangWang 9 DevelopmentPolicies,TransferofPollutionAbatement Technology,andTrans-boundaryPollution. . . . . . . . . . . . . . . . . . 143 XiaochunLiandYuZhou PartIV ModernAgriculture 10 AStudyonUrbanPrivateCapitalandtheTransferofLabor intheModernAgriculturalSector. . . . . . . . . . . . . . . . . . . . . . . . . 161 XiaochunLiandQinShen 11 AnalyzingtheEffectofAdvancedAgricultureDevelopment Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 XiaochunLi,QinShen,ChunleiGu,andMengNi 12 Unemployment,WageInequality,andInternationalFactor MovementinthePresenceofAgriculturalDualism. . . . . . . . . . . . 203 XiaochunLiandYuantingXu 13 EnvironmentandEconomyintheModernAgricultural Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 XiaochunLiandYunyunWu Chapter 1 Introduction XiaochunLi The term “emerging economies” has nosingle, exact definition. Inthe year 2010, the China Boao Forum for Asia defined the concept of 11 emerging countries (E11)1forthefirsttime.Amongthosecountries,China,Brazil,India,Russia,and South Africa – also known as the BRIC countries – are relatively affluent, partic- ularly in comparison to the world’s developing countries. According to data released by IMF, economic growth in developed economies in 2015 was 2.4%, while in emerging economies it was 4.3%.2 India, Russia, and Brazil, of whose GDP exceeded one trillion US dollars, have had seats in the top 12 economic entitiesoftheworld. Today, China,India,andRussiahave contributedmorethan half to the economic global growth. Moreover, China’s economy scale is over $10trillion,rankingsecondintheworld. It is noteworthy that the current rapid development of emerging economies occurredmainlyinthelastthreeorfourdecades,whichisdifferentfromdeveloped countries. Duringthisperiod,duetonewtechnologies,suchasITandtheInternet,coupled withincreasingpopulationandlandareasofemergingcountries,whichhavenever been seen in developed countries, new economic phenomena are springing up en masse. Many problems about which conventional economic studies have shown relatively little concern (hereinafter referred toas “the new economy”) have been given a new economic significance in this era. For example, the environmental pollution emerging in China is more severe than any developed country has ever 1E11referstoArgentina,Brazil,China,India,Indonesia,Korea,Mexico,Russia,SaudiArabia, SouthAfrica,andTurkeyintheGroupofTwenty. 2IMF:Intheyear2015,developedeconomiesledglobaleconomicgrowthby3.5%http://china. huanqiu.com/News/mofcom/2015–04/6200548.html X.Li(*) BusinessSchool,NanjingUniversity,Nanjing,China e-mail:[email protected] ©SpringerNatureSingaporePteLtd.2017 1 X.Li(ed.),LaborTransferinEmergingEconomies,NewFrontiersinRegional Science:AsianPerspectives12,DOI10.1007/978-981-10-3569-2_1 2 X.Li experienced.Additionally,China’simmigrantremittancesscaleisequivalenttothe size of New Zealand’s GDP in 2015.3 Moreover, the construction of China’s modernagricultureandothersortsofthingsisallproducingunprecedentedimpacts oneconomicdevelopment.Thestudyofeconomicsisinseparablefromeconomic realities.Whatweneedistoconcentrateonthemarketmechanismsandeconomic policies brought by the new economic phenomenon under the new historical conditions. Amid the emergence of these new economic problems, this book endeavorstoascertainwhethertheoldlabor-transfertheoryisnolongerapplicable tothecurrenteconomicrealityofdevelopingcountries.Wearealsocuriousabout howtoapplythetraditionalmodeltotheseneweconomicproblemsandwhatkinds of conclusions we may then derive. By conducting theoretical research on new economic problems arising from emerging economies, we can obtain relevant theoriesandpolitics,whichispreciselythepurposeofthisbook. 1 China’s Labor Transference, Background and Factors Emerging economies share various characteristics such as a large population and vast territory, which China and India, as large, heavily populated countries, cer- tainlytypify.China’seconomicboomstartedin1978,and,afternearly40yearsof development,thecountryhasbeentransformed.Intheprocess,thetransferenceof rural labor to nonagricultural sectors has had a significant influence on economic development. Alargenumberoffarmershavetransferredfromrurallifetourbanareassince the1980s.ThedatafromChina’sBureauofStatisticsshowsthat,intheyear2015, approximately 277 million4 farmers flooded the cities in search of work. These people (also known as “migrant workers”) have two characteristics: One is a low levelofhumancapital,asaconsequenceofwhich,theycansecureonlylowwages inthecity.Theotheristhattheymusttakecareoftheirruralfamilies,sotheyhave toeconomizeontheirlivingcostsasmuchaspossibleinordertosendmoneyback home. In regard to the first point, with the increasingly rapid economic develop- ment,ourgovernmenthasincreasedinvestmentineducationandvocationaltrain- ing.Therefore,China’slaborforceisaccruingmoreintermsofitshumancapital. However,aswiththelong-termdualeconomicstructure,educationinruralareasis the other side of the coin with respect to urban education. This is evidenced by a lower average of the number of years of education in rural areas. Many farmers chose work over school simply because they need to escape poverty as soon as 3WorldBank,“WorldDevelopmentIndicators”http://databank.worldbank.org/data/reports.aspx? source¼2&type¼metadata&series¼NY.GDP.MKTP.CD NationalBureauofStatistics,“2014SurveyandMonitoringReportofMigrantWorkers”http:// www.stats.gov.cn/tjsj/zxfb/201504/t20150429_797821.html 4NationalBureauofStatistics,“2015SurveyandMonitoringReportofMigrantWorkers”http:// www.stats.gov.cn/tjsj/zxfb/201604/ 1 Introduction 3 possible.Accordingtostatistics,intheyear2015,74%ofmigrantworkershadnot evenfinishedjuniorhighschool.Thisislittledifferentfrom30yearsearlier,when theirparentswenttothecityinsearchofemployment.5Regardingthesecondpoint, with China’s continued economic development, a more advanced educational institutionandinfrastructuregivemigrantworkersmoreopportunitiestoassimilate into urban life, particularly those born after the 1980s. Their concept of life and livelihoodisclosertourbanstandards;asamatteroffact,theyaremorewillingor more able to live in the city, in which case helping to reduce migrant workers’ remittances. However, the income level of the rural population is still low com- paredtotheoveralleconomy.Thus,theamountofremittancefrommigrantworkers continues to rise. According to national statistics and by the authors’ estimation, remittances reached nearly 1.06 trillion RMB (around 170 billion US dollar) in 2014.6 Those remittances play an essential role in rural development. In some regions, the scale of remittances has exceeded the local fiscal revenue,7 being an economicforcewhoseimpactisbeyondargument. Compared to developed countries, however, China’s agricultural sector lags behind.Thus,thefocusondevelopingmodernagriculturehasbecomeanimportant orientation of national development policies in China, as is the case in other emerging countries. Modern agriculture is based on the higher levels of human capitalaswellasthehigherinputoftechnologyandinvestment.Therefore,itisnot only more efficient than traditional agriculture but also more environmentally responsible, despite its higher output. China began to develop its modern agricul- tureinthemid-1990s,andithasmadevariousachievements.Ithasalsosatisfiedthe conditionsforaccelerateddevelopment.8However,duetoaweakfoundation,itis difficultforChinatofullypopularizemodernagriculture,i.e.,tomakeagriculturea business and livelihood equal to any endeavor of similar input in terms of human capital. Finally, it must be emphasized that environmental problems, including those incurredbylabortransference,areprominentinemergingeconomiessuchasChina andIndia.Thisisbecauseemergingcountriesoftenfocusontheeconomicbenefits while neglecting the cause of environmental protection as an essential part of economic development. In fact, labor transference in emerging economies is often accompanied by environmental pollution. The relationship between them is presentedbelow: 5NationalBureauofStatistics,“2015SurveyandMonitoringReportofMigrantWorkers”http:// www.stats.gov.cn/tjsj/zxfb/201604/ 6Source:http://www.stats.gov.cn/tjsj/zxfb/201504/t20150429_797821.html 7LiuFeng.HometownRemittanceandIntegrationintoUrbanLifeofRuralMigrantWorkers:An empiricalstudy basedonsurvey inthree Jiangsu’scities.Mathematics inPracticeandTheory. June2016. 8Tian Cuijie. Thoughts on the Construction of Modern Agricultural Public Service System. AgriculturalEconomy.No.11,2011.
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