Impact of comparative advantages in origin and destination cities on return migrant workers' entrepreneurship: An induced network analysis

Abstract

Return migrant workers' entrepreneurial choices hinge on the comparative advantages between their origin and destination cities. However, prior research has predominantly concentrated on the economic environment solely within migrant workers' origin cities, disregarding the dual impact of both origins and destinations on return entrepreneurship. This study aims to elucidate how the comparative advantages between origin and destination cities affect the behavior of return migrant workers' entrepreneurship, focusing on the paired relationships formed by these cities as a result of the emergence of return migrant workers' entrepreneurship. To this end, this study leverages data from the 2018 China Labor Force Dynamics Survey (CLDS) and the 2018 China City Statistical Yearbook, and utilizes the network MRQAP regression and network OLS regression methods. The findings highlight that migrant workers exhibit a stronger propensity to return for entrepreneurship when their origin cities possess greater comparative advantages in terms of economic development, employment status, standard of living, and entrepreneurial environments compared with their destination cities. Additionally, the heightened activity and significance of origin cities relative to destination cities in regard to economic growth rate, medical resources, and enterprise R&D investment correspond to a higher likelihood of migrant workers returning for entrepreneurship. These outcomes inform the development of theories related to population migration, and shed light on the relationship between return migrant workers' entrepreneurial endeavors and the regional disparities in economic development.