The decisions of migration and remittances in rural China

Restricted until 22 Oct. 2009.Using recent household survey data from rural China, this dissertation investigates the decisions of migration and remittances at both individual and household levels and their impact on agricultural productivity. Previous researchers wonder if remittance behavior can be predicted by the migrants' characteristics; if yes, then these two decisions cannot be identified empirically. We find that the study of remittances is distinct from that of migration, thus deserving separate treatment; and empirically we are able to identify these two decisions. In the literature on migration and remittances, some people treat both as individual-level decisions while taking account of household characteristics; others think that households are the decision makers instead of individuals. We find that individuals and households exhibit different behavioral patterns in migration decisions, thus offering stories from two different angles. Finally, we find that migration with remittances improve the agricultural productivity in rural China. Remittances from migrants bring in advanced technology and increasing capital investment to the farm. In addition, the implicit contract between migrants and their rural households is effective in improving the laborers' efforts in agricultural production