TY - JOUR
T1 - Urbanization of Migrant Workers and Expansion of Domestic Demand
AU - Ligang, Song
AU - Jiang, Wu
AU - Yongsheng, Zhang
PY - 2010/8
Y1 - 2010/8
N2 - This paper explores, from the perspective of general equilibrium, the relationship between urbanizing migrant workers and increasing domestic demand. Why should China adopt the strategy of relying on domestic demand to develop its economy? Countering the impact of declining external demand is only a temporary reason for doing so, and the more fundamental reason is the need to change the "dual imbalance" in today's economy: the imbalance between internal and external economic arrangements and the industry structural imbalance, as well as the need to take full advantage of the domestic market to achieve the goal of industrialization. The latent consumption demand of migrant workers will be fully released if realistic measures are taken to accelerate the pace of turning migrant workers into urban residents. This will help neutralize the negative impact of reduced external demand, as well as rectifying the structural imbalances in the Chinese economy and upgrading China's industrialization and urbanization.
AB - This paper explores, from the perspective of general equilibrium, the relationship between urbanizing migrant workers and increasing domestic demand. Why should China adopt the strategy of relying on domestic demand to develop its economy? Countering the impact of declining external demand is only a temporary reason for doing so, and the more fundamental reason is the need to change the "dual imbalance" in today's economy: the imbalance between internal and external economic arrangements and the industry structural imbalance, as well as the need to take full advantage of the domestic market to achieve the goal of industrialization. The latent consumption demand of migrant workers will be fully released if realistic measures are taken to accelerate the pace of turning migrant workers into urban residents. This will help neutralize the negative impact of reduced external demand, as well as rectifying the structural imbalances in the Chinese economy and upgrading China's industrialization and urbanization.
KW - Chinese economy
KW - Increase in domestic demand
KW - Urbanization of migrant workers
UR - http://www.scopus.com/inward/record.url?scp=79956242957&partnerID=8YFLogxK
U2 - 10.1080/02529203.2010.503080
DO - 10.1080/02529203.2010.503080
M3 - Article
SN - 0252-9203
VL - 31
SP - 194
EP - 216
JO - Social Sciences in China
JF - Social Sciences in China
IS - 3
ER -