Analysis Of The Impact Of Population Movement On Economic Development Of China

It is such a critical period to China as China is deeply involved in the transition phase from the traditional agriculture system to the modern industrial system, in the meanwhile, also turning around towards market economy that China used to known as central planning economy. Along with the transition, the most significant feature is that China will present itself as a dual-core economic structure, with large scale of population movement from country to city, this will have a profound impact on its economy development. In the history of economy development, labour productivity is always one of the most important factors, with the power of shaping the macroeconomic system. China, the great country with largest population over the world, with the market economy reform and political system revolution on-going, will face the challenges of the speeding up of aging population, the large number of undereducated population, and the long-lasting problem, the identity gap between city and country. Those problems could result in a potential hard landing of China economy. Fortunately, the large scale movement of population may have a positive effect on the situation, alleviate the social pressure, thus we have a strong interest to study the theory and mechanism of population mobility, trying to find out a solution to solve the social problems.The article will discuss the population mobility effect in four major aspects.Firstly, in the briefing part, we will talk about the background and practical meaning of our study, summarising the feature and model of population movement, and thus we will try to discuss the multiple layer impact to the economy system.Secondly, the second part of the article will review the theory and model of the population mobility, list down the achievements and describe the current problem we facing, and introduce the our ideas. Thirdly, we will elaborate how to use the theory and model to solve the practical problems, and discuss the core impacts due to population movement, such as the social economy development, the economy growth, income distribution, employment rate, industry upgrade and social welfare in details. Although it may not be the critical factor, the population mobility theory definitely can help. At last, we will summarise and give some advice regarding the policy making and methodology. Based on the analysis, we think that the population mobility can contribute to following sectors.Firstly, it will stimulate the economic growth in different aspects, such as improving the agriculture labour productivity, supporting the city constructing event, thus improve the social resource allocation ability. Although we have some discussions about Lewis turning point, as we see the unsustainable growth pattern by solely reply on the increase of labour factors, for example, labour shortage problem in north coast area, we still believe that we are at the stage of comparative advantage if we can promote the population mobility continually.Secondly, population movement can help to bloom the farmers’income and ideally, the income gap will be eliminated by the population mobility in the dual economy theory, but due to the imbalance development between city and country, the gap of income between them is still large, as China still have many problems in hard, such as identity gap, ununiformed product factors, the resources allocation inefficiency and the labour price gap and development level between city and country.What’s more, the movement of population can also influence the employment market, by pairing the employee and employer from different areas. For example, the structural unemployment can be solved by re-allocating the labour resource to other areas or industry sectors by providing proper training and transformable skills. Industrial upgrade activity happened in the north part of China also need the support of population movement.At last, when we focus on the development areas, we also need to take care about the social welfare, especially the welfare system in countryside, as people trends to go back to country if they are too old to work in city. So we can see an increasing population aging problem in country comparing that in city. One proactive solution is to improve the welfare system in city to cover the moving elder population, thus to reduce the population moving back to countryside.