The Impacts of ASEAN Labour Migration to Thailand upon the Thai Economy

Abstract

The objective of this research is to analyse the impacts of ASEAN labour migration to Thailand upon the Thai economy. A computable general equilibrium (CGE) model is employed to investigate six economic impacts, comprising: gross domestic product (GDP), household incomes, income distributions, labour wages, exports, and imports. Two main scenarios are simulated for such impacts. The first scenario is based upon Thai foreign worker policies, which result in higher GDP, household incomes, exports, and imports but lower wages for unskilled labour and lower income distributions. The second scenario is based upon an ASEAN MRA concerning the labour movement of eight occupations: doctors, dentists, nurses, engineers, architects, accountants, surveyors, and tourism professionals. The results show impacts upon higher GDP, household incomes, income distributions, exports, and imports but lower wages for skilled labour.