Immigration-Trade Relationship in ASEAN: What Does the Evidence Show?

Abstract

The Association of Southeast Asian Nations (ASEAN) has witnessed a greater volume of the movement of people in the region, with intra-regional labour mobility more than quadrupling since 1995. The region has also become more integrated through trade; though extra-regional trade continues to remain more important than intraregional trade. To identify the direct connections between intra-ASEAN migration and two-way trade (exports; imports and intra-industry trade) within the region, the paper employs a panel gravity model for five-year intervals between 1990 and 2019. The empirical results indicate no evidence of a pro-intraregional trade impact of ASEAN immigrants. Despite the insignificant immigration-trade links, the paper justifies the importance for ASEAN to work towards connecting migration and trade policy.