GEP 2020/17: International trade liberalization and domestic institutional reform: Effects of WTO accession on Chinese internal migration policy

Abstract

Economic institutions that impede factor mobility become more costly when an economy experiences substantial transitions such as trade liberalization. I study how trade triggers changes in labor institutions that regulate internal migration in the context of China’s Hukou system. Using a newly-collected dataset on prefecture-level migration policies, I document an increase in pro-migrant regulations following WTO entry and estimate the impact of prefecture-level trade shocks on migration regulations from 2001 to 2007. I find that regions facing more export market liberalization enacted more migrant-friendly regulations.

 Download the paper in PDF format

Author

Yuan Tian

View all GEP discussion papers | View all School of Economics featured discussion papers