The Impact And Mechanism Study Of Migration Experience On Rural Residents’ Entrepreneurship

As a special group in China,rural-urban migrant workers play an important role in promoting the development of urban and rural areas and the process of urbanization.After a large number of rural laborers enter the city,there was a large number of remittances and labor forces flowing back into rural areas.At the same time,some returnees began to start their own business.The floating rural labor force has become a carrier for the transfer of physical and human capital between urban and rural areas,and entrepreneurship has become the best way to release these capitals.Entrepreneurship can not only solve returnees’ own development problems,but also promote the development of local rural areas.So,it is of great practical significance to study the entrepreneurial behavior of returning migrant workers and the mechanism of how migration experience influenced the entrepreneurial behavior.This paper studies the impact and mechanism of migration experience on rural residents’ entrepreneurship by using data of rural residents from CHIP2007(China Household Income Project).Data in 2007 was chosen because it avoids the effect of uncontrolled factors,such as the “return tide” of migrant workers caused by the financial crisis in 2008 and some entrepreneurial support policies implemented in recent years.We find that the migration experience has a significant positive effect on entrepreneurial behaviors of rural residents at both individual and family levels.In order to get more robust result,this paper then discusses the possible endogenous problems,the conclusions are still significant after controlling endogeneity by using instrumental variable method in several models.Considering there might exist other problems,we implement a variety of robustness check strategies to verify the robustness of the conclusion.Further,we studied the influence mechanism from three perspectives of economic capital,human capital and social capital,and reached the following conclusions: First,the migration experience would accumulate economic capital and increase the financing ratio to start business for returnees;second,the migration experience promotes the entrepreneurship of returnees by increasing human capital;third,the migration experience does not improve the valid social capital accumulation of returnees,and to some extent decreases their local social capital,thereby reducing the positive impact of migration experience on entrepreneurship.Based on these findings,this paper puts forward some suggestions: encourage rural labor forces outflows and inflows;improve the efficiency of rural financial services and construct rural credit system to support rural entrepreneurship;provide training programs and introduce entrepreneurial projects to rural areas.