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Immigration - Trade Relationship in ASEAN: What Does the Evidence Show?

Author

Listed:
  • Chanida Ekakkararungroj

    (Ministry of Public Health, Thailand)

  • Sheue-Li Ong

    (University of Malaya & University of Johannesburg)

  • Evelyn S. Devadason

    (University of Malaya)

Abstract

The Association of Southeast Asian Nations (ASEAN) region has become more integrated through trade and migration. Yet, public policies in ASEAN do not consider the interrelations between trade and immigration policies. Therefore, the paper employs a static panel gravity model for the 10 ASEAN countries over five-year intervals between 1990 and 2020 to identify the direct connections between migration and trade (exports, imports and intra-industry trade). The empirical results support a pro-import immigrant effect but not a pro-export immigrant effect. The negative effect of the stock of immigrants on the share of bilateral intra-industry trade implies that immigration better explains one-way trade or inter-industry trade. The limited presence of the immigrant-link effects reflects the large stock of unskilled ASEAN immigrants that reduces the possibilities of creating networks between the home and host countries. The significant immigration-import links, however, is sufficient to justify the importance for ASEAN to work towards connecting migration and trade policies.

Suggested Citation

  • Chanida Ekakkararungroj & Sheue-Li Ong & Evelyn S. Devadason, 2022. "Immigration - Trade Relationship in ASEAN: What Does the Evidence Show?," Malaysian Journal of Economic Studies, Faculty of Business and Economics, University of Malaya & Malaysian Economic Association, vol. 59(1), pages 131-151, June.
    • Handle: RePEc:mjr:journl:v:59:y:2022:i:1:p:131-151
    DOI: 10.22452/MJES.vol59no1.7
    as

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    More about this item

    Keywords

    International migration; international trade; intra-industry trade; ASEAN;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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