VOLUME 2, 1993

Issue No. 3 - Migration and Trade: Implications for the Philippines

Abella, Manolo I.
"Labor Mobility, Trade and Structural Change: The Philippine Experience." Vol. 2 (3), p. 249-268, 1993.
This article addresses three questions: (1)Is the high rate of emigration of labor from the Philippines related to the country's trade policy? (2) Why have migration and accompanying remittances not made much of an impact on the growth and structure of the Philippine economy? (3) Would economic growth and structural change eventually curtail labor migration? The Philippines' history of labor export and its economic development are contrasted with those of Asian NIEs which have adopted liberal trade regimes. Structural economic and demographic factors combined with an inward-looking industrialization policy have sustained a strong labor outflow from the Philippines, in contrast to the NIEs which are becoming net importers of labor. In the newly emerging integration of Asian economies, the Philippines must develop exports based on factors other than labor intensity (e.g., its highly educated workforce) to maintain a competitive edge.

Alburo, Florian A.
"Remittances, Trade and Philippine Economy." Vol. 2 (3), p. 269-284, 1993.
The relationships between trade, remittances from overseas workers and the domestic economy are examined for their implications for labor and trade policy. Import substitution and protectionism as well as weaknesses in the domestic economy continue to pus Filipino workers overseas and encourage dependency on remittances. The limited use of remittances for real productive investments at the household level is associated with length of migration, reliance on overseas workers as a source of foreign exchange, and a failure to correct the structural imbalances of the economy. Unlike other Asian countries such as South Korea and Thailand, the Philippines is far from the turning points in trade and labor migration that allow net labor import. Implications of a coordinated trade and labor policy are discussed.

Villegas, Bernardo M.
"Implications of AFTA on Philippine Labor Export." Vol. 2 (3), p. 285-302, 1993.
After summarizing the major features of the ASEAN labor market and patterns of labor migration in Asia, the article describes the origins and current status of the ASEAN Free Trade Area (AFTA) and its main mechanism, the Common Effective Preferential Tariff (CEPT) Scheme. Projections are offered on the effects on regional trade after AFTA. Though the volume of intra-regional trade may be less significant than in the cases of Europe or North America, AFTA is likely to have a significant effect on promoting a regional division of labor. Although AFTA is limited to the manufacturing sector, in the future the Philippines may find a niche in services requiring "knowledge workers" such as accountants and computer analysts.

Tan, Edita A.
"Labor Emigration and The Accumulation and Transfer of Human Capital." Vol. 2 (3), p. 303-328, 1993.
This article examines the processes involved in the acquisition and transfer of human capital by Filipino overseas workers. The education/labor market has been flexible in meeting foreign demands for skills, with significant increases in medical schools, nursing schools, and maritime training institutions. Homeward transmission of human capital when overseas workers return depends largely on whether skills acquired on-the-job overseas have domestic application. In the four major occupational groupings (seamen, production/construction workers, domestic helpers and entertainers), little homeward transmission of human capital has been identified.

Martin, Philip L.
"Trade and Migration: The Case of NAFTA." Vol. 2 (3), p. 329-368, 1993.
Though the North American Free Trade Agreement (NAFTA) does not directly address the issue of migration and trade, the effects of NAFTA on Mexican migration to the United States will be closely watched. This article provides background information on NAFTA, reviews data on its economic effects, and summarizes studies and projections of NAFTA's likely effects on Mexico-to-U.S. migration. Migration factors (demand-pull, supply-push, and networks) are examined to determine whether NAFTA's effect on economic development particularly in the border areas will accelerate or retard migration. The conclusion is that NAFTA is likely to produce a temporary migration hump, slightly raising already high migration levels in the 1990s, but reducing the volume of Mexico-to-U.S. migration that would otherwise occur over subsequent decades.

Habito, Cielito F., Ella S. Antonio, and Benjamin D. Turiano
"Philippines 2000: Economic Growth and Employment Alternatives." Vol. 2 (3), p. 369, 1993.