Migration, Reverse Migration and Tech Transfer

SOSC 228

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Uneven economic development lead to migration within East Asia, across regions, and within countries Migration a transnational issue, as flows can have major impact on sending and receiving countries. Asia initial loser in outmigration, particularly brain drain, with Western countries as major beneficiaries. Governments can affect the flows of human population. Human capital flows closely linked to technology transfer. East Asia, including India, now benefiting from reverse migration and investment by migrants into their home country. 2

1. Migration Patterns
Result of uneven economic development as migrants seek higher salaries, better living conditions, better education opportunities.

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1. Migration Patterns (cont)

a. Inter-regional flows Most migration to Middle Eastproblems for Philippina workers Political instability or uncertainty key force pushing people out, as in case of Hong Kong pre-1997 Some South American migration to Japan Temporary contract labour migrationbrings remittances, which can be of great importance to developing economies (see table). CLICK Reverse migration of talented and trained migrants from host country to home countrynot on map
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1. Migration Patterns (cont)

b. Intra-regional Migration War refugeesIndochina crisis of 1975-79, can create major unrest and border conflicts Short-term economic migrants seeking higher salariesoutflows from Philippines, China, and Indonesia to Malaysia, Singapore, Hong Kong and Taiwan. Problem in developed economies of East Asia, particularly Japan, of aging population--leads to need for labour migration, but states can resist allowing long-term immigration. East Asia crisis triggered massive movement of Indonesians out of Malaysia
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1. Migration Patterns (cont)

c. Internal Migration increased productivity in the countryside frees up labour force looking for higher wages. urbanization due to migration creates environmental problems in cities infrastructural projects necessitate population resettlementdifficult problem to manage successfully. Example of Three Gorges Dam Overpopulation, loss of arable land, desertification, led to massive population movements in search of places to make a living. As many as 100 million farmers on the move in China in search of jobs
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2. Migration impact on Host and Home Countries

Enormous benefits to US, Canadian and Australian economy, in terms of monies spent, talent acquired Canadian subsidies of Asians who then relocate to U.S.Canada seen as route to U.S. Resolves population pressures in home country, but can lead to loss of talent if migrants are university educated. Some equilibrium point attained when home country economy reaches developmental stage to trigger reverse migration
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3. Government Policies and Impact

Racist government anti-immigration policies Political instability, government caused famine can trigger outflowmajor flows out of North Korea War as major impetus for migration Governments can restrict ouflow through passport controls Government policies can resist inbound migration, such as Hong Kongs policy against mainland migrants, or allowing Filipinos to take on certain jobs, or Australias Family reunification major force for migration Governments, such as Canada, using point system to attract only skilled labour
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4. Brain Drain and Reverse Brain Drain

Level of outflow very high despite Chinese political system:

See Graduate Students Studying Abroad

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Education as migration strategy many who go out do not plan to return

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4. Brain Drain and Reverse Brain Drain (cont)

Level of outflow very high despite Chinese political system:

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Why people might go abroad and not return: push factors out of home country and pull factors in host country; Push factors include political insecurity, poor working conditions and lack of quality equipment in home country, lack of recognition for educatedOTHERS?
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4. Brain Drain and Reverse Brain Drain (cont)

Level of outflow very high despite Chinese political system: Pull factors in Western societies include better recognition of talent, improved quality of life or status for women, government policies based on demand for cheap, technically trained graduate students, university funding for overseas students,
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See Table Why a person might not return to China

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4. Brain Drain and Reverse Brain Drain (cont)

Reverse Migration New phenomenon in East Asia since the 1980s, with different countries or regions undergoing reverse migration at different stages of economic development Taiwan experiences this in 1980s. Hong Kong businessmen return to make money in China but families remain in Canadaemergence of astronauts Koreans refused to return until end of military dictatorship, but children have difficult time adjusting.
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4. Brain Drain and Reverse Brain Drain (cont)

Reverse Migration Chinese reverse migration has emerged since late 1990sdemocratization has not been necessary. Growth of MNCs interest in doing business in East Asiamany internal transfers within companies. Hong Kong major beneficiary of desire for access to China but people not willing to live in China.
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4. Brain Drain and Reverse Brain Drain (cont)

Why Reverse Migration: Chinese Case

See Table: comparing returnees and non-returnees CLICK in development zones

Driven by opportunities in home country, as migrants develop skills that are in short supply in their home countryotherwise they would not have gone overseas.
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4. Brain Drain and Reverse Brain Drain (cont)

Why Reverse Migration: Chinese Case Government incentives to bring people or their technology back to the home country. Control over new technologies can bring great profits in home economy, especially if linked with cheaper labour at home Cultural component: cultural comfort and glass ceiling in Western society Aging parents Reference now to brain circulation rather than brain drain.
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4. Brain Drain and Reverse Brain Drain (cont)

Benefits of Reverse Migration Technology transfer and foreign investment see Table on quality of technology

Role of networks established between East Asian country and the West Key role of Silicon Valley (see Saxenian) Role of democratization unclear
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Major migration patterns in early 1990s

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Migrantworker remittances in relation to GNP & export earnings

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Number of graduate students studying abroad & their rates of return, 1952-99

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Views about returning to China

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Intentions about studying in the US before leaving China

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Trust in government policy about freedom to study abroad after returning

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Why a person might not return to China

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Comparing returnees and nonreturnees in development zones

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