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The effects of rural–urban migration on corporate innovation: Evidence from a natural experiment in China

Deqiu Chen, Huasheng Gao, Jiang Luo, Yujing Ma · 2019 · Financial Management

Summary. Rural-to-urban migration of low-skilled workers in China reduces corporate innovation in receiving cities. Using China's relaxed household registration policies as a natural experiment, the study finds firms in cities adopting these policies innovate significantly less than firms in non-adopting cities. An abundant supply of low-skilled labor makes existing technology more profitable, reducing incentives to develop new innovations.

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Chen, D., Gao, H., Luo, J., & Ma, Y.. (2019). The effects of rural–urban migration on corporate innovation: Evidence from a natural experiment in China. Financial Management. https://doi.org/10.1111/fima.12280

Details

DOI
10.1111/fima.12280
Countries
China
Regions
Asia
Categories
innovation-theory, regional-innovation-systems
Added
2026-04-28