Foreign Labor Force Research Articles

Правовое регулирование привлечения иностранных граждан для работы в России

The research conducted in this article was devoted to the analysis of legal regulation of attracting foreign citizens to work in the territory of the Russian Federation. The analysis of legislation and practice on this issue is important in the context of modern challenges to global migration and the need for foreign labor force. This article is a historical overview of how the legal framework was developed in Russia. It also analyzes modern regulations and international agreements that regulate labor migration in the country. Problems arising in the process of attracting foreign workers are identified and analyzed, and ways of solving them are proposed. The final part contains the main conclusions and proposals, which are aimed at further improvement of legal regulation in this sphere.

The Relationship between Trade Openness and Economic Growth in Laos: Evidence from ARDL Bounds Testing Approach

The relationship between trade openness and economic growth, both theoretical and empirical investigations have shown varied results. Broadly speaking, trade openness has both positive and negative impacts on the economy in three major ways: (1) by increasing competition, (2) by increasing export opportunities, and (3) by lowering production costs due to cheaper imported inputs. This paper applies the autoregressive distributed lag (ARDL) bound testing approach to investigate the relationship between trade openness and economic growth in Laos during the period 1990 to 2018. The empirical results show that in the long run trade openness has positive effects on economic growth in Laos. However, in the short run, no positive influence has been observed in economic growth. Other variables such as foreign direct investment, human capital, and labor force also have positive effects on economic growth in the long run. There is only inflation has a negative impact on economic growth in both the short and long run. Laos is a middle-income nation in ASEAN, and thus the government of Laos must enhance trade openness by effectively controlling import levels in order to boost economic growth through international trade.

The Effect of Domestic Investment, Foreign Investment, Labor, Unemployment, Human Development Index, and Inflation on Poverty in Indonesia

Indonesia continues to contend with elevated levels of poverty, reflecting the diminished well-being experienced by a segment of its population. Various socio-economic factors influence the poverty rate. It is hypothesized that domestic and foreign investments, workforce participation, and the Human Development Index (HDI) could reduce poverty, while unemployment and inflation might exacerbate it. However, previous research has not reached a consensus on these relationships. This study examines the impact of domestic and foreign investments, labor force, unemployment, HDI, and inflation on poverty levels in Indonesia. The research employs panel data regression analysis, utilizing data from 34 Indonesian provinces spanning 2006 to 2022. The findings indicate that the fixed effect model is the most appropriate for this analysis. The study concludes that domestic investment, foreign investment, and labor force have a significant negative correlation with poverty. Conversely, unemployment demonstrates a significant positive relationship with poverty rates. Notably, the HDI and inflation do not significantly affect poverty in Indonesia. To address these issues, the Indonesian government should focus on enhancing domestic and foreign investor confidence by improving legal certainty and offering various incentives to stimulate investment. Furthermore, the government must prioritize improving education and healthcare services to elevate HDI and alleviate poverty.

Unleashing the dynamic linkages among natural resources, economic complexity, and sustainable economic growth: Evidence from G‐20 countries

AbstractThis research delves into whether access to natural resources is a blessing or a curse, a matter of contention within contemporary literature. Lacking conclusive evidence, particularly within the G‐20 countries, this study endeavors to establish the intricate linkages between economic development, natural resources, and economic complexity. A subset of G‐20 economies from 1990 to 2021 was used to analyze the results of the second‐generation CS‐ARDL model. After accounting for variables like corruption, total labor force, gross capital formation, trade openness, and inflow of foreign direct investment, we find that natural resources, economic complexity, corruption and gross capital formation are significant and adverse predictors of economic growth. Natural resource dependence is susceptible to price fluctuations and sustainability concerns, economic complexity may introduce market volatility challenges, corruption erodes trust and transparency, and excessive gross capital formation can lead to economic imbalances. On the other hand, economic growth is positively impacted by the additional effects of the control variables, including foreign direct investment, trade openness and labor force. In crafting its policy recommendations, this study artfully weaves a tapestry that resonates with the core principles of the Sustainable Development Goals (SDGs). These strategic imperatives include the adept stewardship of resources, the cultivation of economic diversity, the seamless facilitation of trade, the fortification against corruption, and a harmonious symphony that underscores financial stability and the nurturing of human capital, ultimately painting a vivid portrait of sustainable economic growth.

Contribution of FDI, fiscal policy, and labor force on inequality and economic growth: A case study in South Sulawesi, Indonesia

South Sulawesi Province faces a significant problem: economic growth that has not been inclusive. This study analyzes the relationship between foreign investment contribution, fiscal policy, and labor force to inclusive economic growth in South Sulawesi, Indonesia. The results of this study show two relationships, namely direct and indirect relationships. Judging from the direct influence. First, FDI and local native income positively affect the level of inequality. However, in contrast to general allocation funds and labor force variables, each negatively affects inequality. Meanwhile, FDI, general allocation funds, and local original revenues positively affect economic growth. However, in contrast to the variables labor force and inequality, each negatively affects the inequality level. When viewed from its indirect influence, FDI, general allocation funds, labor force, and local native income each positively impact economic growth through levels of inequality. The implication of this study is the importance of governments allocating FDI investments for infrastructure development that supports inclusive growth.

LABOR MIGRATION: A VIEW FROM KAZAKHSTAN

This research was funded by the Science Committee of the Ministry of Education and Science of the Republic of Kazakhstan (grant no. IRN AP19679267). Today, Kazakhstan has a comprehensive system for attracting foreign labor force. There is a quota system for skilled foreign labor and labor immigrants and a multi-stage system for issuing work permits. Nevertheless, a number of problems remain in the management of labor migration that need to be addressed: the system for attracting labor migrants to Kazakhstan is not associated with the management of other migration flows; there is no mechanism for determining the demand for skilled foreign labor in regional labor markets; the system of recording the movement of labor migrants and determining the effectiveness of its use is not perfect; there is an outflow of qualified workers from various fields of activity and there is no mechanism for retaining highly qualified specialists in the country; illegal labor migration persists. The study substantiates individual proposals for the formation of a comprehensive mechanism for regulating labor migration. Keywords: migration, labor migrant, employment, social protection, labor market, Kazakhstan.

Analysis of the Relationship between Energy Consumption, Foreign Direct Investment, and Labor Force Participation by Vector Error Correction Model: The Case of Kazakhstan

This study examines the relationship between energy consumption, foreign direct investment, and labor force participation rate in Kazakhstan for the 1991-2021 period. Data on energy consumption are retrieved from the enerdata website, and data on foreign direct investment and labor force participation rate from the World Bank website. The Vector Error Correction Model (VCEM) method was used for data analysis. Research findings have shown that foreign direct investments have an effect on energy consumption for Kazakhstan both in the long run and the short run. The study found that although the labor force participation rate has an effect on energy consumption in the short term, it has no effect in the long term. These results are also important in terms of indirectly showing the long-term effects of foreign direct investments on the economy. The study used annual series for all three variables. Another important subject of study for explaining this relationship may be the use of series in different periods (especially quarterly).

Demographic and migration processes in the Far East of Russia (on the example of Primorsky Krai)

This article highlights the features of demographic and migration processes characteristic of the Far Eastern Federal District (hereinafter referred to as FEFD) in general and Primorsky Krai in particular. Based on materials of official statistics, the resident population dynamics of all Russia’s subjects that are part of the FEFD is considered. In this region, the development specifics’ of modern period migration processes are revealed; differentiated indicators of migration increase/decrease in the population are analyzed. A number of implemented state initiatives are outlined, to some extent contributing to the improvement of the socio-economic situation of the FEFD, as well as the normalization of its demographic situation. However, it is noted that despite the adoption of special measures/conditions, it is not possible to overcome the negative demographic trend of the macroregion. The paper emphasizes that in the Far East external labor migration has become a valuable source of compensation for the shortage of local labor resources. Thus, according to the author, the foreign labor force of this macroregion should be considered as the most important element of its socio-economic development, putting forward the problems of international labor migration among the most priority issues.

Determinant of Economic Growth in ASEAN Countries (Indonesia, Thailand, Malaysia, Singapura, Philipines) 2010-2019

This research aims to analyze the effect of Foreign Direct Investment, Labor Force, External Debt, and Economic Freedom, on the Economic growth of Selected ASEAN Countries. The data used in this study is annual data for the period 2010-2019 sourced from The World Bank, Ceic Data, and Heritage.org. The analytical method used in this research is panel data analysis supported by Eviews 11.0. The results is show that foreign investment has a positive and insignificant effect on economic growth the workforce has a significant and positive effect on economic growth, foreign debt has a positive and dignified effect, and economic freedom has a significant and positive effect on economic growth.

Sociocultural adaptation and job satisfaction as mediators between cultural competence and intention to stay among Vietnamese workers in Taiwan

This study employs a moderated mediation model to investigate the role of sociocultural adaptation and job satisfaction in the relationship between cultural competence and intention to stay. It also considers the moderating function of local language proficiency and length of residence. A survey was conducted among Vietnamese migrant workers employed in Taiwan’s manufacturing industry under the labour export programme. This resulted in a valid dataset of 636 respondents, which was used to test the proposed hypotheses. The findings demonstrated that sociocultural adaptation and job satisfaction fully mediated the relationship between cultural competence and workers’ intention to stay. Moreover, local language proficiency and length of residence were found to substantially strengthen the positive relationship between cultural competence and sociocultural adaptation, but not to moderate the association between cultural competence and job satisfaction. Theoretically, the study contributes to the literature on psychological and behavioural management by examining how migrant workers’ job satisfaction and sociocultural adaptation are related to the association between cultural competence and intention to stay. Practically, the study addresses current concerns regarding the rate of job retention among migrant workers participating in labour export programmes. Its findings provide policymakers and employers with additional evidence to improve and effectively maintain their foreign labour force. It is recommended that both sending and receiving governments implement appropriate and effective management policies to manage the low-skilled foreign labour force.

The Impact of Basotho Migrant Labourers’ Retrenchment from South African Mines on Rural Development in Lesotho: The Post-Mine Livelihood Strategies of Former Basotho Miners at Koro-Koro in the Maseru District

The migration of Basotho men in search of employment opportunities in South African diamond and gold mines dates back to the 1800s. The South African mining industry has been the source of employment and livelihood for many Basotho families by remitting incomes for centuries. However, there was a downturn in events starting in the late 1980s and early 1990s, when many South African mines started to downsize their foreign labour force. This contributed to the loss of remittances that were invested in farming and the maintenance of many rural households in Lesotho. This study was conducted to investigate the post-mine livelihood strategies of former Basotho migrant labourers at Koro-Koro in the Maseru district. The research followed a descriptive research design where primary data was collected from a sample of 50 former Basotho mine workers using snowballing and simple random sampling techniques. Qualitative and quantitative data were collected using face-to-face interviews and observation. The collected data was analysed qualitatively and quantitatively using descriptive statistics, mainly percentages. It is argued in this paper that retrenchment and the loss of jobs by many Basotho men in South African mines were major blows to the livelihoods of many rural households. In addition, Basotho men who worked in South African mines are now confronted with unemployment as well as futile exertions while engaging in alternative income generating activities, both farm and non-farm.

Impact of Foreign Direct Investment, Inflation, Labor Force, and Population on Improving Living Standards in the Philippines

Vast amount of literature has well-established FDI as an important determinant of technology acquisition and modernization, economic development, capital accumulation, and employment. Economists are too engrossed in how FDI positively affects the economic growth of both the home and host countries; only a few have been associated with investigating how FDI actually improved the living standards of the people. This paper examined the impact of FDI, Inflation, Labor Force, and Population on improving living standards in the Philippines from 1985 to 2021 using the different econometric tests which are: (1) Augmented Dickey-Fuller Test, (2) Jarque-Bera Normality Test, (3) Variance Inflation Factor, (4) Breusch-Pagan Heteroskedasticity test, (5) Breusch-Pagan-Godfrey Autocorrelation test, (6) RAMSEY Reset test, (7) Correlation Matrix, (9) OLS Multiple Regression, (10) Johansen Cointegration and (11) Granger Causality. The findings in the various tests revealed that FDI, Inflation, Labor Force Participation, and Population have cointegrating relationships with Self-Rated Poverty Rate within the time series. Moreover, the OLS regression model has shown that Labor Force Participation and Inflation have significant relationships with living standards while the country’s FDI and Population are insignificant. Granger Causality also revealed that Inflation, Labor Force, and Population Granger caused living standards in the Philippines and only FDI not. With all of the results of the tests, it is evident that the dependent variables affect the living standards in the Philippines, it just varies on how little or extensive it is. This study supports the loosened restrictions to foreign ownership as the results affirmed the significant effects of most of the dependent variables on the Self-Rated Poverty Incidence; however, must still take precautionary measures as some variables exhibit insignificance in the long run. The paper recommends implementing policies that are moderately reliant on Foreign Direct Investment, Population, Inflation, and Labor Force Participation rate because all of the variables are proven to be related to the Self-Rated Poverty Incidence, which is the variable used to measure the living standards in the Philippines. However, the Philippine government should focus and be meticulous on policy clauses that would benefit not just the corporate but also its employees to help attain prosperity for the country and its countrymen and to help alleviate poverty.

Economic and social consequences of the ban on the employment of foreign workers (example of the Central Federal District)

The article for the first time examines the experience of regulating international migration by imposing bans on attracting foreign citizens who work on the basis of patents in certain types of economic activity. The study was conducted on the basis of a comparison of the socio-economic indicators of the regions of the Central Federal District that use this tool (Tver and Voronezh regions), never used it (Moscow) and recently joined the practice (Kaluga region). The statistic for 2014-2022, reflecting the dynamics of external migration flows, the state of internal labor resources and individual sectors of the economy, as well as the level of crime among migrants, is analyzed. Conclusions about the prohibitive practice as a practice, which has little effect on the studied indices of protectionist regions and weakly distinguishes them from the background of other regions, are drawn. The number of issued patents in the Tver region is declining with a slight decrease in international labor migration in general, which indicates a change in the proportion of the foreign labor force in favor of a category, that does not require a patent. The dynamics of the gross regional product indicators for the groups of economic activities forbidden for the employment of foreign citizens coincides with the general upward trend due to an increase in labor productivity in all the subjects under consideration. Crime among foreign citizens in the Tver region before the pandemic was declining with an increase in the number of crimes committed against foreigners, which corresponded to the dynamics in Moscow and in the district as a whole. It seems promising to confirm or refute the obtained conclusions based on the results of studying the indices of all protectionist regions of the Russian Federation, which will improve the methods of forecasting and managing migration processes. It is also noted the need to expand the range of available data by forming a single digital database that makes it possible to trace the process of attracting foreign citizens at control points: medical (passing a medical examination), educational (passing an exam in the Russian language, Russian history and the basics of Russian legislation), financial (payment indicators monthly imputed patent tax).

Role of Official Development Assistance, Foreign Direct Investment and Trade Openness in Reducing Income Inequality: An Empirical Analysis from Selected Asian Countries

Income inequality has been increasing steadily in developing economies. Many factors are responsible for such income inequality and deteriorated economic growth in Asian economies. For this reason, a lot of debate has been made about reducing income inequality. Though the existing study also takes into account the important role of official development assistance, foreign direct investment, and trade openness in reducing income inequality in selected Asian countries, the study found that official development aid, foreign direct investment, trade openness, and labour force participation have greatly reduced income disparity in 10 Asian nations. For growth, good production and exports require more jobs. Globalization and international ties should be prioritized. Finally, economies need a stable economic and political environment to attract aid and foreign investment and grow and expand.

How Renewable Energy and CO2 Emissions Contribute to Economic Growth, and Sustainability—An Extensive Analysis

Using energy efficiently is crucial for economic development and sustainability. However, excessive use of fossil fuels impedes sustainable economic growth, and the released emissions have a negative impact on the environment. Still, there is no consensus in the literature as to the side effects or even regarding the determinants used to assess this relationship. As such, this article explores the effects that CO2 (carbon dioxide) emissions and renewable energy consumption have on economic growth, using fixed assets, human capital, research and development, foreign direct investment, labor force, and international trade as controls, on a sample of 27 EU (European Union) countries between 1994 and 2019. Four different methodologies were applied to the sample, namely ordinary least squares, fixed effects, random effects, and the generalized method of moments in first differences, allowing endogeneity to be accounted for. Results show that gross fixed capital, human development, and trade contribute positively to economic growth; however, even though these contributions increase due to renewable energy consumption, that increase occurs at the expense of more CO2 emissions. This expense may be justified by the high dependency on fossil fuels in the EU 27 group. Policy implications are presented for policymakers, namely governments, in light of sustainability and climate change.

The Effect of Consumer price index, Foreign Exchange Reserve and Labour Force on economic growth of Nepal

One of the main objectives for any country is to attain higher economic growth. Even though there are many factors that affect the economic growth of the country, this paper tries to examine the casual associations between the major economic indicator (GDP) with other factors such as consumer price index (CPI), foreign exechange reserve (FOREX), Labour force, so as to confirm the short run and long run relationship between GDP and these factors. This study uses the data from 1990 to 2021. Johansen approach to cointegration and vector error correction model has been implemented and the result have confirmed that a percentage increase in consumer price index will decrease GDP by 0.98 percentage, a percentage increase in foreign exechange reserve increase GDP by 0.017 percentage, where as a percentage increase in labour force will decrease GDP by 0.25 percentage.

Impact of labor migration on human capital and GRP of Russian regions

The article presents an analysis of the impact of external labor migration on human capital and GRP that indirectly reflects the labor demand in Russian regions. The results of the study showed the contradictions that have developed in the Russian regions: demand for skilled labor and shortage of labor resources, which is covered by low-skilled labor migration. As a result, a negative trend is developing — segmentation of labor markets in regions where two parallel demands for skilled and low-skilled labor are formed. The study recorded a positive relationship between the number of migrant workers and GRP, which indicates a steady demand for foreign labor force (FLF). Along with this, the impact of migrant workers on human capital in the Russian regions has undergone significant changes, and not all regions have received and receive a positive contribution from foreign labor force. Also, the results of the study confirmed not only the important role of labor migration for human capital, but also confirmed the hypothesis that labor migration has a positive impact on human capital by enhancing its qualitative characteristics in difficult or critical moments of the development of Russian regions, and therefore the demand for labor migration will continue in the medium term. In essence, labor migration, human capital and GRP are communicating vessels. The conclusion is made about underestimation of the program of voluntary compatriots' resettlement, which had a positive effect on the development of regional economies in 2014. In view of this, the author believes that the program needs a serious revision in order to attract skilled labor migration and increase the human potential of the country.

Efficiency measures and influencing factors for rural land outsourcing: Evidence from China, 2003–2015

In the context of China’s vigorous promotion of its rural revitalization and land transfer policy, land outsourcing is a perspective worthy of attention to understand China’s rural land production and agricultural development. Based on rural land outsourcing in China from 2003 to 2015, this study adopts DEA efficiency analysis and Tobit regression analysis to measure the efficiency of rural land outsourcing in China as well as discuss its influencing factors. The results show that 1) from 2003 to 2015, the efficiency of rural land outsourcing in China has risen, especially in the eastern region, where the efficiency has the best performance. Overall, technical efficiency has hindered the improvement of rural land outsourcing efficiency. 2) The development of rural land outsourcing is restricted by factors such as the newly increased arable land area in rural areas, the foreign labor force, and rural managers, while land outsourcing income cannot significantly promote the expansion of land outsourcing. 3) Large rural agricultural enterprises or cooperatives enhance the efficiency of land outsourcing. Under the food security policy, realizing the technological increment of land outsourcing and land economy can effectively promote the scale and production efficiency of land outsourcing.

The Effect of Renewable and Nonrenewable Energy Use on Sustainable Development in South East Asia

This research focuses on observing the effects of renewable and fossil fuel energy usage on the environment and economic growth in Southeast Asian countries. The study utilized the annual data of southeast Asian countries from 1990 to 2020 This study used gross fixed capital formation, foreign direct investment, renewable energy, population, non-renewable energy, and Labor force on fundaments of economic growth concerning sustainability. Fixed Effect, Radom Effect, and a two-step GMM methodology were used to estimate the link among the variables. The consequences of the study demonstrate that renewable energy intake has a destructive and statistically significant influence the dependent variable: CO2 emission whereas fossil energy has a noteworthy and positive influence on CO2 emissions. Foreign direct investment and population have a significantly positive influence on CO2 emission. While non-renewable and Renewable-energy intake has a momentous optimistic bearing on the economic progress of nominated ASEAN states along through labor force and capital formation. The universal energy needs depend on finite nonrenewable energy sources in the form of natural gas, oil, and coal which are exhaustible and hazardous to the environment. So, the need for hours is that the governments should escalate the use of renewable energy in their energy mix to increase the economy’s growth and environmental sustainability.

THEORETICAL ASPECTS OF INTERNATIONAL LABOR MIGRATION AGAINST THE BACKGROUND OF EXTERNAL SHOCKS

The article considers the theoretical problems of international labor migration under the influence of external shocks. The destructive impact of hostilities in Ukraine is underscored by the forecasts of international institutions. External migration of Ukrainians can have extremely serious consequences. Emphasis is placed on the distinction between exogenous and endogenous shock factors. Endogenous are macroeconomic in origin, forms and results, micro- and mesoeconomic in shifts in business processes. Exogenous shocks have the following forms of origin: macroeconomic "black swans" as destructive fluctuations in world markets; catastrophic natural disasters; socio-political conflicts. The evolution of the main theories of international migration has been studied. The relevance of theoretical principles and practical application of microeconomic analysis of migration processes is emphasized. Globalization and increasing inequality have directed a significant part of research to analyze population movements from peripheral to central countries, with a focus on the economic situation in donor countries. Modern foreign theories of migration are based on the postulates of the neoclassical approach, which determines the movement of labor migration with a vector from countries and regions with excess human potential to countries with high demand and limited supply. Discrepancies become apparent when the use of cheap migrant labor makes a profit at the corporate level. At the same time, macroeconomic assessments note technological stagnation, the preservation of low levels of conditions and wages. The role of migration rent in the policy of firms-recipients of foreign labor force is analyzed. In conditions of global inequality, the rent for the use of cheap labor has an objective basis and is the main motive for the formation of a special labor market for foreigners. After the end of the war, the key issue for Ukraine and the world community will be the recovery of the national economy and the return of migrants to their homeland. Supporting the refugee return process, ensuring their reintegration and employment in the Ukrainian economy will contribute to the rapid resumption of economic activity in Ukraine. All practical steps must be based on sound theoretical principles, classical studies of international labor markets and labor migration processes.