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Does Firm Agglomeration Induce Migration? Evidence from Vietnam

Cuong Nguyen () and Phung Quang ()

Economics Bulletin, 2020, vol. 40, issue 4, 3325-3337

Abstract: This study examines whether the geographical agglomeration of firms affects inter-province migration in Vietnam. We measure firm agglomeration by per capita firm outputs at the province level. We find that the agglomeration of private firms but not stated-owned enterprises and FDI firms has a significant effect on inter-province migration. A one percent increase in private-firm revenue per capita of original provinces reduces the number of out-migrants by 0.075 percent, while a one percent increase in the private-firm revenue per capita of destination provinces increases the number of in-migrants by 0.064 percent. Interestingly, we find a stronger effect of the firm agglomeration on highly-educated people than lowly-educated ones.

Keywords: Firm agglomeration; migration; gravity models; population census; Vietnam (search for similar items in EconPapers)
JEL-codes: O1 R2 (search for similar items in EconPapers)
Date: 2020-12-30
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