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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, pages 177-216, National Bureau of Economic Research, Inc.
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    3. ERIA CADP Research Team, . "The Comprehensive Asia Development Plan 2.0 (CADP 2.0): Infrastructure for Connectivity and Innovation," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2014-rpr-4 edited by ERIA CADP Research Team, January.
    4. Takatoshi Ito & Andrew K. Rose, 2005. "International Trade in East Asia," NBER Books, National Bureau of Economic Research, Inc, number ito_05-1, October.
    5. Ito, Takatoshi & Rose, Andrew K. (ed.), 2005. "International Trade in East Asia," National Bureau of Economic Research Books, University of Chicago Press, number 9780226378961, December.
    6. 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.
    7. P. Gregory, 2015. "The International Food Policy Research Institute (IFPRI): three recent publications," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(5), pages 1091-1092, October.
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    Cited by:

    1. Fukunari Kimura, 2019. "Comment on “Joining Global Production Networks: Experience and Prospects of India”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 14(1), pages 146-147, January.
    2. Dieu Ne Dort Talla Fokam & Paul Ningaye & Celestin Chameni Nembua, 2020. "Ethnic Diversity Management and Poverty in Developing Countries," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 19(1), pages 47-60, June.
    3. Hayakawa, Kazunobu & Keola, Souknilanh & Silaphet, Korrakoun & Yamanouchi, Kenta, 2022. "Estimating the impacts of international bridges on foreign firm locations: a machine learning approach," IDE Discussion Papers 847, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Sarbajit Chaudhuri & Saibal Kar, 2023. "Oil price shock and informal workers in dual labor markets," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 869-879, October.
    5. Njangang, Henri & Chameni Nembua, Célestin & Nembot Ndeffo, Luc, 2018. "Can Chinese foreign direct investment promote industrialization in African countries?," MPRA Paper 89726, University Library of Munich, Germany.

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    More about this item

    Keywords

    Global value chains; Agglomeration; Lewis model; Informal sector; Thailand;
    All these keywords.

    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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