Economic Growth of East Asian States: The Impact of Foreign Workers

In recent years, there have been increased levels of international labor migration in various nations. Eastern Asian countries, such as Thailand, have seen a considerable surge in migrant workers, raising interest in individual nations’ impact. Walmsley et al. (2013) mention that immigrants comprise people with varied skill levels. He further states that their presence has had a significant effect on their economies (Walmsley et al. 2013). Foreign workers perform essential skills and have affirmative productivity influences, thus, are integral to the long-term economic growth of East Asian states.

Immigrants have positive output impacts in host countries, regardless of their skill levels. Highly trained individuals integrate unique abilities and experience, which manifest through overall productivity improvements in the industries and firms which they work in. Conversely, low skilled foreign personnel have higher motivation levels and labor ethos than the local workers (Jordaan, 2018). Therefore, to foster long-term economic growth, East Asian nations will rely much on such workers due to the allied high yield levels.

Moreover, gathering of people from different parts of the world brings together diverse knowledge and ideas, spurring innovation and advancement. Tipayalai (2020) notes that immigrants have been an integral driver in encouraging firms to increase investments and expand their overall capacity, leading to increased output. Technological progress and innovations are crucial for long-term economic growth; hence, the states will need distant personnel to enhance these aspects.

Overall, foreign workers are a lifeline to the long-term economic growth of East Asian nations. They are more hardworking than natives, especially low-skilled ones, which prompts industries to increase capacity (Jordaan, 2018). Furthermore, they bring diverse ideas which are the root of innovations. As such, they will remain essential for the economic development of the region. However, there is a need to address foreign workers’ concerns about being exploited and taking away locals’ jobs to avoid conflicts between them and the natives.

References

Jordaan, J. A. (2018). Foreign workers and productivity in an emerging economy: The case of Malaysia. Review of Development Economics, 22(1), 148–173.

Tipayalai, K. (2020). Impact of international labor migration on regional economic growth in Thailand. Journal of Economic Structures, 9(1), 1–19.

Walmsley, T., Aguiar, A., & Ahmed, S. A. (2013). Labor migration and economic growth in east and southeast Asia. The World Bank.

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StudyCorgi. "Economic Growth of East Asian States: The Impact of Foreign Workers." February 20, 2022. https://studycorgi.com/economic-growth-of-east-asian-states-the-impact-of-foreign-workers/.

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StudyCorgi. 2022. "Economic Growth of East Asian States: The Impact of Foreign Workers." February 20, 2022. https://studycorgi.com/economic-growth-of-east-asian-states-the-impact-of-foreign-workers/.

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