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Dynamics of Push and Pull Factors of Migrant Workers in Developing Countries: The Case of Indonesian Workers in Malaysia

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  • Fariastuti Djafar

Abstract

Low income and high unemployment in labour sending countries and high income and low unemployment in labour receiving countries are frequently justified as push and pull factors of migrant workers, respectively. Indonesia is the main labour-exporting country to Malaysia but the studies on the push factors in Indonesia and the pull factors in Malaysia are very limited. This paper has three objectives. The first objective is to examine the long-run relationship among income and unemployment in Indonesia and Malaysia and the Indonesian migrant workers in Malaysia. This is followed by examining the causality between the variables in the second objective, and the extent to which income and unemployment in Indonesia and Malaysia determine the Indonesian migrant workers in Malaysia in the third objective. Time series data were employed and analysed by utilizing the Vector Autoregressive (VAR) framework. The findings show a long-run relationship among income and unemployment in Indonesia and Malaysia and the Indonesian migrant workers in Malaysia. Only unidirectional causality is found in the long-run, which is from income and unemployment in Indonesia and Malaysia to Indonesian migrant workers in Malaysia. The findings also show that the Indonesian migrant workers in Malaysia are significantly determined by income and unemployment, positively in the case of Indonesia, and negatively, in Malaysia.

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  • Fariastuti Djafar, 2012. "Dynamics of Push and Pull Factors of Migrant Workers in Developing Countries: The Case of Indonesian Workers in Malaysia," Journal of Economics and Behavioral Studies, AMH International, vol. 4(12), pages 703-711.
    • Handle: RePEc:rnd:arjebs:v:4:y:2012:i:12:p:703-711
    DOI: 10.22610/jebs.v4i12.370
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    1. Serdar Öztürk & Buket Altınöz, 2022. "An Investigation of the Impact of Health Expenditures on International Migration as a Pull Factor in OECD Countries Using a Panel Vector Autoregression (PVAR) Approach," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 9(1), pages 39-52, January.
    2. Amjad Ali & Nooreen Mujahid & Yahya Rashid & Muhammad Shahbaz, 2015. "Human Capital Outflow and Economic Misery: Fresh Evidence for Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(3), pages 747-764, December.
    3. Fullerton, Thomas M., Jr. & Walke, Adam G. & Villavicencio, Diana, 2015. "An Econometric Approach for Modeling Population Change in Doña Ana County, New Mexico," MPRA Paper 71141, University Library of Munich, Germany, revised 28 Jan 2015.
    4. George-Laurentiu Serban-Oprescu & Liana Badea & Isabel Novo-Corti & Mihaela Roberta Stanef & Silvia Elena Iacob & Grigore Ioan Pirosca, 2021. "Socio-Psychological Dimensions of Students Migration. A Pilot Study," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(Special15), pages 1015-1015, November.
    5. Marek Piotrowski & Paweł Huras & Katarzyna Modrzejewska, 2021. "Determinants of the human capital redistribution. What pushes out and what pulls to the regions of Masovian Voivodship," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(2), pages 50-64, December.
    6. repec:ipg:wpaper:2014-584 is not listed on IDEAS

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