International Migration, Cross-Border Labor Mobility, and Regional Economic Integration in Asia and the Pacific

Aiko Kikkawa, Raymond Gaspar and Cyn-Young Park ()
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Aiko Kikkawa: Asian Development Bank (ADB)

No 2102, Discussion papers from ERINA - Economic Research Institute for Northeast Asia

Abstract: International migration is considered an essential element of economic integration. Yet, the intraregional movement of people and labor in Asia and the Pacific has stagnated in recent years in contrast to the steadily rising flow of goods, services, and investment. This paper examines the key factors driving the movement of people from and within the region using bilateral international migrant stock data and evaluates whether some key indicators of economic integration between origin and destination economies have additive effects on this movement/these movements. Our analysis shows that commonly known determinants such as income differences; population size; and political, geographical, and cultural proximities between the migrant origin and destination countries are associated with greater movement, along with the growing share of older population in destination economies and the similarities in the level of educational attainment. The paper also finds that cross-border migration is affected, in varied directions, by the degree of economic integration between the origin and destination economies, especially through bilateral trade and value chain links. The offshoring of production—and hence jobs and other economic opportunities—to migrant origin countries suppresses outmigration, but the expected rise in the origin country income will eventually promote migration by relaxing financial constraints.

Keywords: international migration; labor mobility; regional economic integration (search for similar items in EconPapers)
JEL-codes: F22 O15 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2021-12
New Economics Papers: this item is included in nep-ban, nep-dev, nep-int, nep-mig, nep-sea and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:eri:dpaper:2102

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