Research Proposal:Impacts of Labor Migration on Local Economy of Receiving Communities – Thailand, Lao PDR and Cambodia

Prepared by: Cici, Warin and YinDate: Friday, 6 May 2010

1.Introduction• Labor migration: is generally defined as a

cross-border movement for purposes of employment in a foreign country. (IOM Definition)

• Local economy: • Economy is the system of trade and industry by

which the wealth of a country is made and used (Cambridge Dictionary) .

• GDP is one of the way of measuring the size of country’s economy. It is defined as the total market value of all final goods and services produced within a country in a given period of time.

3

Thailand

Land area: 513 K sq km

Population: 65.3 M

GDP per capita: US$2,727

Cambodia

Land area: 181 K sq km

Population: 13.8 M

GDP per capita: US$393

Lao PDR

Land area: 237 K sq km

Population: 5.6 M

GDP per capita: US$491

The GMS in 2005

Land area: 2.6 M sq km

Population: 316 M

GDP per capita: US$1,102

Data Thailand Lao PDR Cambodia

No. of Migrant, as of 2004(Top 3 Countries Origin)

Burma (921,492)

China (80,000)

Vietnam(150,000+)

Cambodia(183,541)

Vietnam(15,000)

China(n/a)

Lao PDR(179,887)

Unemployment rate (%)

4.5 / 2.2(1998/2003)

4.6(1998)

2.8 / 2.5(1998/2000)

Background

Sources – Resource Book Migration in the GMS, Mekong Migration Network and Asian Migrant Centre, November 2005.

1.1 Rational• The economy impact of labor migration varies from

country to country. Labor migration can have different effects resulting from the volume, composition, and characteristics of the migratory flows.• Migrant workers contribute 0.5% to GDP of

Thailand(World Bank, 2006) • Lao PDR: is a destination country for migrants

constructing major infrastructure development projects (IOM)

• Cambodia: 2nd largest migrant receiving country within GMS; skilled workers such as technical and managerial personnel come with FDI (Center for ASEAN Study, 2008)

• The impact of migration on countries of origin and destination is controversial

• Labor migration continues to increase in GMS.

1.2 Research Questions

•Q1: How much labor migration contribute positively to local economy?

▫ White-Collar refers to employees who perform knowledge work, such as those in professional, managerial or administrative positions.

▫ Blue-Collar Refers to employees who perform manual labor, such as in a factory.

1.3 Objectives

•To identify the nature of labor migration in receiving communities;

•To describe the major sectors where labor migration working for;

•To measure positive contribution of labor migration on local economy of receiving communities

2. Conceptual Framework

LABOR

LOCAL MIGRANT

PRODUCTION

EXPORT

D.COMSUPTION

GDPY=C+I+G+(X-M)Y-X= C+ I+G -M

4. Scope & Limitations• Scope:

▫Receiving Countries: Thailand, Lao PDR, and Cambodia

▫Labor Migration: Skilled and non-skilled labor▫Sectors of employment: Fishery, Agriculture,

Service, Construction, Engineering, Technology

• Limitations:▫Data sources accessibility ▫A few selected sectors of employment;▫Limited sample size and sampling geographies▫Time constraint: 6 months

Time Management

ACTIVITIES MAY JUN JNL AUG SEP OCT

NOV DEC

Proposal Drafting X

Literature Review X X X X X X

Survey Design X

Data Collection X

Data Analysis X

1st Draft 1

2nd Draft 15

Final Draft 31

Q and A

Thank you for your attention.