Trade Liberalization and International Migration: The Philippine Case

The paper examines the determinants of international migration in the Philippines. Specifically, it looks at the relationship of trade and migration. It proposes an eclectic migration model and shows by regression analysis that goods and labor mobility are substitutes in the medium and long terms. In the short run, as economies expand due to market reforms, migration may still continue. Other determinants of international migration include the economic growth of the country and specific factors related to the destination countries like wage rates and the existence of networks. Political stability in the Philippines did not turn out to be significant. The key policy prescription is to continue with the economic reforms such as improving trade openness to increase the employment and income possibilities of the Filipino people. In the short run, government needs to ensure the protection and welfare of the overseas contract workers