The Impact Of Labor Migration And Industrialization Process On Regional Economic

Since the reform and opening-up policy, the economy of China achieved great improvement and development. But in the same time, the imbalance in regional economic development is still an unavoidable problem. There are direct interactions between regional economic gap and labor migration, which performs as regional economic gap accelerated the pace of labor migration, and labor migration is also the causes of the gap. As labor migration is the inevitable result of social development, its impact on economic growth is great, especially for China such a country with a large population base and much migrating people. With the implement of household registration reform spreading, labor migration obstacles will eliminate gradually, which will leading a faster speed of labor migration across regions, and finally will have a far-reaching economic impact on regional economy.Based on the analysis of the characteristics of labor migration and regional industry clustering effect, this paper measures the industrialization process index, and then introduces the influence of industrialization process while analyzing the impact that labor migration has on economic growth. Finally from theory and empirical evidence aspects, we discuss the impact that labor migration and industrialization process have on economic growth. By developing a panel data model with labor migration, industrialization process and economic growth, this paper reveals the long-term equilibrium relationship among the three parts. In order to learn the short-term causality among the three parts, we construct a panel-data VECM model. Compared with previous relevant literatures which only consider one factor, this paper comprehensively considers two factors:labor migration and industrialization process, as well as their interaction, and obviously, on this point, this paper has its originality.The empirical evidence shows that labor migration, industrialization process and physical capital stock all play a role on economic growth, which differs from regions. Labor immigration has convergence while affecting economic growth, while labor emigration enlarges the gap between regional developments, at the same time, industrialization process evens out the gap among regions effectively. But this doesn’t mean that we can achieve the purpose of promoting economic growth by only controlling the labor migration direction, it is also important to take the quality of the labor force, which is called human capital level, into consideration. Although the impact of human capital isn’t significant in this paper, we can’t deny the important role it plays in economic growth.