Impact of international labor migration on regional economic growth in Thailand

Abstract The movement of labor in the Southeast Asia and particularly Thailand, which is home to more than half of all ASEAN migrant workers, is an issue of growing interest and increasing importance. As Thailand is now confronted with the new challenge of the so-called “middle-income trap”, the Tha...

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Main Author: Katikar Tipayalai
Format: Article
Language:English
Published: SpringerOpen 2020-02-01
Series:Journal of Economic Structures
Subjects:
Online Access:https://doi.org/10.1186/s40008-020-00192-7
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author Katikar Tipayalai
author_facet Katikar Tipayalai
author_sort Katikar Tipayalai
collection DOAJ
description Abstract The movement of labor in the Southeast Asia and particularly Thailand, which is home to more than half of all ASEAN migrant workers, is an issue of growing interest and increasing importance. As Thailand is now confronted with the new challenge of the so-called “middle-income trap”, the Thai government has recently implemented the long-run economic development plan called “Thailand 4.0”, focusing on high productivity and innovative creation from skilled foreign workers. To put Thailand 4.0 in action, the Eastern Economic Corridor (EEC), which is an example of region-based development, serves as a pilot project. However, while demand for high-skilled workers from developed countries increases, the majority of immigrants in Thailand is considered to comprise low-skilled workers from neighboring countries within ASEAN. This article, therefore, examines the impact of international labor migration on regional economic growth in Thailand from 2003 to 2015 through an econometric estimation of the production function by considering the economic consequences of immigration through production and productivity separately for skill-classified migrant workers. The findings empirically indicate that immigrants, and particularly high-skilled ones, have a statistically significant and positive impact on the growth of the regional economy as well as labor productivity in Thailand, thereby suggesting more attention should be paid to the role of regional area-based development policies as well as the ability of the host country to absorb high-skilled migrant workers.
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spelling doaj.art-c4e9ba7f74d44e3b93eb6b78d1bd81702022-12-21T22:26:59ZengSpringerOpenJournal of Economic Structures2193-24092020-02-019111910.1186/s40008-020-00192-7Impact of international labor migration on regional economic growth in ThailandKatikar Tipayalai0Graduate School of International Development, Nagoya UniversityAbstract The movement of labor in the Southeast Asia and particularly Thailand, which is home to more than half of all ASEAN migrant workers, is an issue of growing interest and increasing importance. As Thailand is now confronted with the new challenge of the so-called “middle-income trap”, the Thai government has recently implemented the long-run economic development plan called “Thailand 4.0”, focusing on high productivity and innovative creation from skilled foreign workers. To put Thailand 4.0 in action, the Eastern Economic Corridor (EEC), which is an example of region-based development, serves as a pilot project. However, while demand for high-skilled workers from developed countries increases, the majority of immigrants in Thailand is considered to comprise low-skilled workers from neighboring countries within ASEAN. This article, therefore, examines the impact of international labor migration on regional economic growth in Thailand from 2003 to 2015 through an econometric estimation of the production function by considering the economic consequences of immigration through production and productivity separately for skill-classified migrant workers. The findings empirically indicate that immigrants, and particularly high-skilled ones, have a statistically significant and positive impact on the growth of the regional economy as well as labor productivity in Thailand, thereby suggesting more attention should be paid to the role of regional area-based development policies as well as the ability of the host country to absorb high-skilled migrant workers.https://doi.org/10.1186/s40008-020-00192-7ImmigrationRegional economic growthThailand 4.0Production function
spellingShingle Katikar Tipayalai
Impact of international labor migration on regional economic growth in Thailand
Journal of Economic Structures
Immigration
Regional economic growth
Thailand 4.0
Production function
title Impact of international labor migration on regional economic growth in Thailand
title_full Impact of international labor migration on regional economic growth in Thailand
title_fullStr Impact of international labor migration on regional economic growth in Thailand
title_full_unstemmed Impact of international labor migration on regional economic growth in Thailand
title_short Impact of international labor migration on regional economic growth in Thailand
title_sort impact of international labor migration on regional economic growth in thailand
topic Immigration
Regional economic growth
Thailand 4.0
Production function
url https://doi.org/10.1186/s40008-020-00192-7
work_keys_str_mv AT katikartipayalai impactofinternationallabormigrationonregionaleconomicgrowthinthailand