Sectoral technological progress, migration barriers, and structural change in China

We construct a multi-sector Eaton-Kortum model, embodying migration barriers. * We infer technological progress and migration barriers across Chinese provinces. * The migration barriers are asymmetric across provinces. * Rich provinces gain less from inter-provincial trade than poor provinces. We introduce a novel accounting method to infer sectoral technology and migration barriers among Chinese provinces, using data on structural change and migration from 1990 to 2010. The method is based on a multi-sector Eaton-Kortum model, embodying labor mobility friction across provinces. We find that t... Mehr ...