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Industrialization and poverty reduction in East Asia: Internal labor movements matter

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  • Kimura, Fukunari
  • Chang, Mateus Silva

Abstract

A number of developing East Asian countries have achieved both rapid economic growth and poverty reduction by effectively utilizing global value chains. An essential, but often neglected, condition for their economic development is smooth labor movements from the rural to urban sectors. This paper demonstrates that such labor movements have played an important role in the process of industrialization with global value chains. After conducting some international comparisons, we examine the case of Thailand for its massive labor movements until the mid–2000s as well as discussing stagnant moves in recent years.

Suggested Citation

  • Kimura, Fukunari & Chang, Mateus Silva, 2017. "Industrialization and poverty reduction in East Asia: Internal labor movements matter," Journal of Asian Economics, Elsevier, vol. 48(C), pages 23-37.
  • Handle: RePEc:eee:asieco:v:48:y:2017:i:c:p:23-37
    DOI: 10.1016/j.asieco.2016.10.005
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    References listed on IDEAS

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    1. Mitsuyo Ando & Fukunari Kimura, 2005. "The Formation of International Production and Distribution Networks in East Asia," NBER Chapters,in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 177-216 National Bureau of Economic Research, Inc.
    2. World Bank, 2015. "World Development Indicators 2015," World Bank Publications, The World Bank, number 21634, June.
    3. Keola, Souknilanh & Andersson, Magnus & Hall, Ola, 2015. "Monitoring Economic Development from Space: Using Nighttime Light and Land Cover Data to Measure Economic Growth," World Development, Elsevier, vol. 66(C), pages 322-334.
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    More about this item

    Keywords

    Global value chains; Agglomeration; Lewis model; Informal sector; Thailand;

    JEL classification:

    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J0 - Labor and Demographic Economics - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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