Abstract
AbstractWe construct a simple model of hukou reform for the transition period (specifically, 1984–2010) when peasants were allowed to migrate to cities for work only. We show that reform recovers some of the deadweight losses from Mao's strict hukou control, but the gains from reform are unevenly distributed. Using the basic model, we illustrate two factors that contribute to China's trade boom and export pattern reversal, namely, the rural–urban migration caused by the institutional reform in the labor market and the demographic dividend China has enjoyed for the past 40 years. We apply the model to examine the impacts of various policies such as special economic zones, export‐tax refund, urbanization, etc., which should provide directions for empirical and quantitative research.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
