Labor mobility, trade and structural change: the Philippine experience.

Area of Science:

• Economics
• International Relations
• Development Studies

Background:

• The Philippines has a long history of labor export, with significant remittances impacting its economy.
• The country's trade policies and economic development trajectory are unique compared to East Asian newly industrialized economies (NIEs).

Purpose of the Study:

• To investigate the relationship between Philippine trade policy and the high rate of labor emigration.
• To understand why labor migration and remittances have had a limited impact on the Philippine economy's growth and structure.
• To explore whether economic growth and structural change could eventually decrease labor emigration.

Main Methods:

• Comparative economic analysis of the Philippines and Asian NIEs.
• Examination of trade policies and their correlation with labor emigration patterns.
• Assessment of the macroeconomic impact of remittances on economic development.

Main Results:

• The study identifies a connection between the Philippines' trade policies and its high rate of labor emigration.
• Remittances have not significantly spurred broad-based economic growth or structural transformation in the Philippines.
• The economic development models of Asian NIEs with liberal trade regimes offer a contrasting perspective.

Conclusions:

• Philippine trade policy is a contributing factor to labor emigration.
• The current economic structure and development path limit the positive impact of migration-driven remittances.
• Sustained economic growth and structural reforms are crucial for potentially reducing labor emigration in the long term.