Population Flow And Its Impact On Economic Development Of Population Outflow Region

Since the China’s reform and opening-up, the number of China’s floating population gradually increased and the massive population floating has begun to appear in1900s. From the economics perspective, because of the structure of urban and rural binary economy, most of the floating people are migrant workers of rural area and they float from agriculture to industry and services, from Midwest which economy is relatively backward to the east which economy is relatively developed. The mass migration movements caused by economic gap bring re allocation of labor resources definitely, change the quantity, quality, proportion, distribution of labor input in outflow region’s economical production in short time and change other factors of economic production,such as Production factor and technical level,through a variety of paths in long time. Accordingly, population flow has impaction on outflow region’s economic development.From the above background, this paper researched the population flow’s effect on economic development of outflow region taking Wanbei area in northern of China’s Anhui province as an example. Firstly, this article summarized the national and international existing research results on two points which are population flow mechanism and population flow’s effect on economic development, then introduced the theories about economic growth. Combined the relevant characteristics of economic and population of China’s population output and focused on the supply of economical production,this article analysed the changes of physical capital, labor, human capital and technology level which caused by population flow and Summarized how population flow influence economic development of outflow region. This paper argues that in short time, population flow will transfer the surplus labor in traditional sector to capital sector, improve labor efficiency in economical production of population outflow region and transfer part of resident population to other area to reduce population base. So the population flow could increase output per worker through "production effect." and "transfer effect". For the long time, population flow can increase aggregate demand and reduce the cost of capital, and thus add physical capital stock in production. Population flow also adds human capital stock in the early stage of economic development through "incentive effect" and enhance technical level through population flow back and promoting industrial upgrading. Therefore population flow can also promote economic development of outflow region in long time. Based on the above analysis, the model of population flow’s effect economic development of outflow region can be built. Take Wanbei area as an example, through analysing the changes of economic and population From2001to2011, this paper proved the results of theoretical analysis empirically and verified that transfer of surplus labor force of Wanbei area has positive effect on economic development in ten years. Lastly, this paper summarized main Conclusions, policy recommendations and deficiencies of this study.