A Policy Brief Ben Duncan Gurpreet Jaswal Dayton Marks

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Presentation transcript:

A Policy Brief Ben Duncan Gurpreet Jaswal Dayton Marks Immigration in ASEAN A Policy Brief Ben Duncan Gurpreet Jaswal Dayton Marks

ASEAN Association of Southeast Asian Nations Founded in 1967 Promotes the social, economic and political cooperation Member states: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam

Immigration in the ASEAN Context Demographic transition Labour market shortages Income differentials Ease of migration Lack of discourse on immigration within regional blocs ASEAN Economic Community committed to skilled labour migration

Study Long-run economic impacts Malaysia and Thailand High GDP per capita vs. Low GDP per capita Geography Migration costs

Methodology Time Series model Assumptions: Harris-Todaro Model of urban-rural migration Solow Model for exogenous growth 𝑌=𝐴𝑓 𝐾,𝑁 𝑁 𝑥 = 𝑁 0 𝑁 1 𝑁 2 𝑁 3 ⋯ 𝐴 ∗ = 0 ∞ 𝑁 0 𝑎 + 𝑁 1 𝑏 + 𝑁 2 𝑐 + 𝑁 3 𝑑 dt 𝑥 𝑡 = 𝑥 𝑡−1 ∗ (1+𝑛𝑜𝑟𝑚𝑖𝑛𝑣(𝑟𝑎𝑛𝑑(),𝑔,𝜈) 𝛽

Current Immigration Policy: Malaysia

Current Immigration Policy: Thailand

High-Skilled Immigration: Malaysia

High-Skilled Immigration: Thailand

Policy Recommendations Short-run growth Low-skilled immigration Long-run growth High-skilled immigration Criteria based immigration system Liberalize and regularize immigration Address brain drain issue Expedite bureaucratic dealings For the long-run, invest in human capital

Thank You

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