Entrepreneurial effect of rural return migrants: Evidence from China

Entrepreneurship is an important means of economic development. Rural migrant workers returning home to start their own businesses can promote employment, alleviate poverty, and achieve rural development structural transformation of rural development. The entrepreneurial effect of rural return migrants is important for rural economic development. Using the data of the China Labor Force Dynamics Survey (CLDS thereafter) 2018 and China Household Finance Survey (CHFS thereafter) 2019, we analyze the entrepreneurial effects of return migrants upon their return to their hometowns. We construct a career choice model and build a mathematical model based on it to formulate the hypothesis. Then, we use the Probit regression model to test the hypothesis empirically. Results find that the rural return migrants can promote entrepreneurship among residents. Land circulation, human capital, and physical capital are stimulating factors in promoting the rural entrepreneurial activities of return migrants. We recommend that the government actively guide the rural return migrants to start businesses and provide security for entrepreneurial activities by upgrading various entrepreneurial elements.