A Dynamic Analysis of Rural-to-Urban Migration
Date Issued
2011
Date
2011
Author(s)
Lin, Li-Cheng
Abstract
The process of urbanization plays an important role in the economic growth of a country. Urbanization stands for the phenomenon that large number of population moving to the urban area, along with the situations causing economic growth, such as economies of scale and agglomeration effects. Urbanization is a dynamic process, and even in the developed countries it is still an ongoing phenomenon. However, previous literature often focuses on discussing the reasons why households choose to migrate to urban, and the difference of labor wages between urban and rural areas, overlooking the fact that urbanization is a dynamic and continuous process. Based on Harris and Todaro (1970), this paper develops a general equilibrium model with two-sector, two-period overlapping generations. In this model, we endogenize fertility choice and the decision-making of children’s education, in order to discuss the reasons for urbanization and to describe the dynamic process of migration toward urban area. The process of urbanization results in the exclusion effect of rates of natural and social increase. In addition, the model built in this paper can help ana;yze the effects of other polices.
Subjects
rural-to-urabm migration
urbanization
dynamic analysis
Type
thesis
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