Labor migration & regional integration in the Asia Pacific on the context of Knowledge Based Society

1. Labor Migration & Regional Integration in
Asia Pacific beyond the
Borders
Ernesto Rangel
Francisco Mares
APEC Study Center
Universidad de Colima, México
Eppur si muove
Galileo Galilei

2. Contents
• Introduction
• Framework
• Regional Integration Initiatives
• Final reflection

3. Introduction
• Migration over the existence of the human
race has been a daily practice in search of
better living conditions. However, since its
inception nation states have sought to
protect their interests, often impeding the
free movement of labor between regions,
as a kind of protectionism in their domestic
labor markets.

4. • One of the central aspects that
contributed to the promotion of labor
migration in the Asia Pacific, has been
the formation of nodes of concentration
of knowledge, science and technological
development, which attracts labor force
with different skill levels from different
latitudes.

5. • Under the approach of the knowledge society, we aim to
identify the poles of attraction of skilled or not work force,
and the areas of expulsion, which allow highlighting the
fact of labor migration in the region from an economic
and social development perspective, thus showing that
exceeds the neoclassical theoretical restriction of
mobility of labor. Such mobility on several occasions
however, is recognized as illegal; however that kind of
mobility is coming from the patterns of attraction beyond
the territorial boundaries of each of the economies.
• Strictly speaking, we talk about a problem that needs
addressing in order to seek better integration under the
aegis of economic cooperation.

6. • Under these considerations, this paper seeks to detect
the flows of labor in the Asia Pacific, particularly in
agreements as TPP, NAFTA, or any other initiatives of
regional organization such as ASEAN +(+) associated
with enterprise networks, based on the fact that they are
possessing unique technology and knowledge
generation, thus constituting very attractive poles for
migration.
• It is assumed that the generators of knowledge, lead to
an appropriate space for the mobility of labor (brain
drain, the marketing of educational services, the
agricultural labor market and migration "illegal" for
example, have been considerate as forms of labor
mobility), even beyond public policy designed to address
this issue.

7. • This interest is focused on the fact that there are
insufficient studies in APEC, particularly in the
Human Resources Development WG and Labor
& Social Protection Network, appearing the
reality that labor migration is much more
representative of what neoclassical theory
assumes with severe restrictions to the
economic labor factor compared to the mobility
of capital generating social problems wht a
paradox solving others.
• In this sense, authors argue that state
intervention to prevent the free movement of
labor is opposed to the creation of integrated
regional markets and ignores the reality facing
the labor in the international arena.

8. Framework
• Approaching from the theoretical perspective to a
debatable subject is at least desirable to consider the
theory of economic integration proposed by Bela
Balassa (1964). This theory sees firstly economic
integration as a process involving several stages, which
explains without major problems many FTAs in the
region, which at the moment leading to the spaghetti
bowl. Particularly in the context of this theory the
neoclassical version of factor mobility detect various
economies restricting labor mobility as economic factor
against the free capital flows in the Asia Pacific Regions.
• The proposed open regionalism and economic
cooperation in Asia Pacific is also a framework to
consider the labor migration issue.

9. • Paul Krugman (1995; 1999), presents the
challenges facing labor when required to
travel to other countries, these restrictions
are given much by the limitations imposed
by economies of labor attractive.
• PECC & ABAC Studies, show the benefits
of labor movements and the costs to
ignore them

10. Regional Integration Initiatives
• As part of the efforts of States in the Asia Pacific region to promote
economic integration and cooperation, we can identify initiatives that
bring together countries with dissimilar economic growth rates, size
of their economies, status or stages of economic
development, forms of political organization and production, natural
resource endowments and different cultures that lead to very
specific worldviews.
• Despite all this, and shock of reality which represent phenomena
such as globalization, impose a sense of common good and
progress through joint cooperation, at least in the liberalization of
trade and investment, recently identified and unquestioned until
today (, as real levers for economic growth and development (see
chart,1).

11. Chart, 1. Benefits from FTAs to U.S. Exports, 2010
Source: International Trade Administration, http://trade.gov/fta/ May 13th, 2012.

12. Chart, 2. Four indicators on Labor force and migration
in TPP economies, 2010.
Source: World Bank, www.databank.worldbank.org, May 10th, 2012

13. Chart 3. Net Migration in TPP economies, 2010.
Source: World Bank, www.databank.worldbank.org May 10th, 2012.

14. Table 4. Bilateral Remittances on TPP members
These data are estimated using assumptions and arguments as explained in Ratha and Shaw
(2007).
Remittance-
receiving
country
(across)
-
Remittance-
sending
country (down) Australia
Brunei
Daruss
alam Chile Malaysia
New
Zea
lan
d Peru Singapore
United
St
at
es Vietnam
Australia 0 0 127 534 19 105 640
Brunei
Darussalam 5 0 87 0 0 0 0
Chile 16 0 0 0 148 17 0
Malaysia 68 0 0 3 0 0 0
New Zealand 672 0 17 0 1 26 17
Peru 1 0 0 0 0 5 0
Singapore 0 0 1,129 0 0 14 0
United States 760 1 59 21 897 0 3,760
Vietnam 0 0 0 0 0 0 0
ESTIMATED
REMITTANCE
S IN 2010 4,335 5 1,576 685 2,494 3,122 7,215

15. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sendingcountry
Receiving country
BilateralRemittance 2010 (%millions of US$)
Vietnam
United States
Singapore
Peru
New Zealand
Malaysia
Chile
Brunei Darussalam
Australia

17. Final Reflection
• We conclude that APEC has to rethink the labor migration as
regional integration factor without ignorance of reality, as there are
movements of population with great benefits and social possible
solutions for the economic cooperation and development of the
economies members.
• In the authors´ opinion APEC could develop some studies as PECC
and ABAC did, in order to put behind the closed border and
liberalize labor as economic factor.
• APEC has special interest in Human Resource Development in
order to facilitate the work force qualification; it has very specific
networks, so it is possible to contribute for a better connection
among the economies. Initiatives as TPP could be considered a next
generation agreements, including the labor factor that anyway is
moving across the borders.

18. Thank you!
Спасибо!
Gracias!