Relocating or Redefined: A New Perspective on Urbanization in China Li Gan Qing He Ruichao Si Daichun Yi NBER Working Paper No. 26585

Issued in December 2019

NBER Program(s):Development Economics, Public Economics

China's fast economic growth over the past 40 years has been accompanied by an increasingly rapid rate of urbanization, from about 20% in the early 1980s to 60% in 2018. In addition to natural population growth, rural-urban migration is generally believed to be a dominant driving force. Motivated by a recent finding of a high housing vacancy rate in urban China, however, we find that a large share of urban population growth comes from community reclassification. These redefined migrants (from communities which were reclassified from rural to urban) accounted for 33.4% of total urban population growth from 2010 to 2015. Households in reclassified communities share similar characteristics with those from rural villages, particularly in their ownership of housing. Furthermore, we provide evidence that at the prefecture level, the size of redefined migrants is significantly related to residential land supply, and to the proportion of households holding vacant housing units, but not to the change of night-time light. These results suggest that an inaccurate account of urbanization is an important factor for the oversupply of residential housing units in China. You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery. Access to NBER Papers You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy. If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access. E-mail:

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appendix Acknowledgments Machine-readable bibliographic record - MARC, RIS, BibTeX Document Object Identifier (DOI): 10.3386/w26585