Abstract
This article employs a Tiebout-inspired approach to examine how out-migration affects broad-based development in rural China. This approach is tested at two levels: on statistical data from the province level and through interviews with rural (village) officials in western Shandong Province. These tests are inconclusive in that they uncover evidence of increased social provision in response to outward migration at the province level, but there is little evidence that village-level officials are responding to out-migration pressure. Instead, this work uncovers a modified Tiebout-effect: rural communities compete for investments, and the outcome of this competition affects the likelihood of out-migration.
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