An Economic Analysis of Labor Market Integration in East Asia

The purpose of this paper is to present an objective ana1ysis, both theoretical and empirical, of the impact of the labor market integration in East Asia on both host countries and homecountries. In adition to the economic impact of migration, the social effect is also discused. While international migration generaly gives negative impacton the host country, it can give economic benefits at least to sending countries, because it can increase income and employment oportunities in (porer) sending countries. However,the same economic benefits could be achieved by other measures. Especialy, trade liberalization seems to be hopeful. Instead of moving people internationally, the international movement of "goods" could increase the income and employment oportunities of sending countries with smaller adjustment cost. The important point is that trade liberalization benefits both host countries and home countries.