Prepared by: Cici, Warin and Yin Date: Friday, 6 May 2010 Research Proposal: Impacts of Labor Migration on Local Economy of Receiving Communities – Thailand, Lao PDR and Cambodia Prepared by: Cici, Warin and Yin Date: 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.

The GMS in 2005 Land area: 2.6 M sq km Population: 316 M Thailand Land area: 513 K sq km Population: 65.3 M GDP per capita: US$2,727 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 The GMS: a natural economic area bound together by the Mekong River, and a shared culture and history. The six GMS members are Cambodia, the People’s Republic of China, Lao PDR, Myanmar, Thailand, and Viet Nam. PRC’s participation is currently focused only on the southern provinces of Yunnan and Guangxi. Land area: about 2.5 million square kilometers – about the size of Western Europe Population: 316 million people, a little larger than that of the United States Average per capita: reached the $1,000 mark last year, due to rapid economic growth. Competitive advantage: GMS is rich in human and natural resources and biodiversity, includes timber and fisheries, minerals, energy (hydropower, coal, petroleum and gas. It has a huge pool of young, industrious, and trainable labor. Living standards improving as a result of modernization and industrialization. Cambodia Land area: 181 K sq km Population: 13.8 M GDP per capita: US$393 3 3

Background Data Thailand Lao PDR Cambodia No. of Migrant, as of 2004 (Top 3 Countries Origin) Burma (921,492) China (80,000) Vietnam (150,000+) (183,541) (15,000) China (n/a) (179,887) Unemployment rate (%) 4.5 / 2.2 (1998/2003) 4.6 (1998) 2.8 / 2.5 (1998/2000) 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 GDP PRODUCTION LABOR EXPORT LOCAL MIGRANT D.COMSUPTION GDP Y=C+I+G+(X-M) Y-X= C+ I+G -M

4. Scope & Limitations Scope: Limitations: 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 Survey Design Data Collection Data Analysis 1st Draft 1 2nd Draft 15 Final Draft 31

Thank you for your attention. Q and A Thank you for your attention.