InternationalMigration andDevelopment:TheCase of ChinaZai Liang and Hideki MorookaState Universityof New York at AlbanyThis project is supportedbygrants from NSF,NICHD,and theFord Foundation
International Migration and Development: The Case of China Zai Liang and Hideki Morooka State University of New York at Albany This project is supported by grants from NSF, NICHD, and the Ford Foundation
How International MigrationAffectsDevelopment?Earlierstudies,summarizedbyTayloretal.(1996)emigrationunderminestheprospectsof economicgrowth."Productivevs.non-productive use of remittances.Taylor(1999),fromtheperspectiveof neweconomicsofmigration,arguesthatMigration decisionsarepart offamily strategies to obtainfundsand to insure againstincome and productionrisk.and Masseyand his associates.Remittances,setin motion a developmentdynamic bylooseningproductionandinvestmentconstraints.Using data from MMP,Masseyand his associates suggest that we paymoreattentionto conditions underwhichremittancescan be usedinproductiveway
How International Migration Affects Development? • Earlier studies, summarized by Taylor et al. (1996) “emigration undermines the prospects of economic growth.” Productive vs. nonproductive use of remittances. • Taylor (1999), from the perspective of new economics of migration, argues that – Migration decisions are part of family strategies to obtain funds and to insure against income and production risk. and Massey and his associates. – Remittances, set in motion a development dynamic by loosening production and investment constraints. • Using data from MMP, Massey and his associates suggest that we pay more attention to conditions under which remittances can be used in productive way
International Migration andDevelopment (Continued) One of the most important insights from thisline of reasoning is that remittances haveindirect effect on the local economy.Consumption by migrant householdsgenerates demand for different goods(garment,appliances,eateriesandentertainment...).Spending on housing generates demand forhouse-building materials. (especiallyimportant in the Chinese context)
International Migration and Development (Continued) • One of the most important insights from this line of reasoning is that remittances have indirect effect on the local economy. • Consumption by migrant households generates demand for different goods (garment, appliances, eateries and entertainment.). • Spending on housing generates demand for house-building materials. (especially important in the Chinese context)
Objectives of the Current ResearchJoin this debate by using newly collected data fromChina's Fujian province.Focus on remittances.Size of remittances is big(s88billion in 2002InternationalOrg.ofMigration)In one of the migrant-sendingregions,Changle.S460milli0nin2003.Examine determinants of amount of remittances,and determinants of how remittances were used
Objectives of the Current Research • Join this debate by using newly collected data from China’s Fujian province. • Focus on remittances. • Size of remittances is big ($88 billion in 2002, International Org. of Migration). • In one of the migrant-sending regions, Changle, $460 million in 2003. • Examine determinants of amount of remittances, and determinants of how remittances were used
ResearchDesignThis project is modeled on the success of MexicanMigration Project, directed by Douglas S. MasseyandJorgeDurand.In Fujian province, we selectedeight towns that areknown to send emigrants to the U.S. Foreach town,we sampled roughly 2o0 households using multi-stage sampling technique.In New Yorkmetro area,we interviewed30-40immigrants who came from each of the eight towns.ThetotalU.S.sample size is 410
Research Design • This project is modeled on the success of Mexican Migration Project, directed by Douglas S. Massey and Jorge Durand. • In Fujian province, we selected eight towns that are known to send emigrants to the U.S. For each town, we sampled roughly 200 households using multistage sampling technique. • In New York metro area, we interviewed 30-40 immigrants who came from each of the eight towns. The total U.S. sample size is 410