LECTURE 2

Contemporary Issues in
Global Economics
WIUT
Date: October 9, 2017

Presenter: Dr. Bilol Buzurukov

Todays Topic
Globalization: winners and losers
Poverty and Global Inequality
International Trade Issues
Economic Integration
International Labor Migration
Climate Change
Foreign Direct Investment
Global Value Chains
Global Financial Crisis
Rise of State Capitalism: China, Russia and Brazil
Abroad
Who has been abroad?
What was the purpose of your visit?
Statistics
2013 Total Immigrants in the Republic of Korea
Country 1,576,034 Sex Total Education Work Marriage
Male 27,975 343 16,124 57
Uzbekistan 38,515
Female 10,540 125 283 1,484

Male 2,993 97 37 51
Russia 7,829
Female 4,836 279 22 590

Male 1,832 38 986 6

Kyrgyzstan 3,079
Female 1,247 69 67 430

Male 1,461 128 93 7

Kazakhstan 2,967
Female 1,506 206 14 117

Male 417 30 0 0
Tajikistan 492
Female 75 9 0 8
Source: Korea Immigration Service, 2013
Emigration & Immigration

Emigration - departing one's resident

country.
Immigration - arriving to a destination
country.
https://www.iom.int/world-migration
Types of International Migration

Employment
opportunities in
developed countries
is one of the key
Tourism; factors facilitating
Education; Refugees; Illegal Migrants;
Business; every
Asylumtype of
Seekers; Undocumented
Work; migration.
Bogus Refugees; Migrants;
Treatment; Economic Migrants. Clandestine Migrants..
Etc.
Theories and Labor Migration

Neoclassical Economics Theory:

potential migrants conduct a cost-benefit calculation in deciding
whether or not to migrate.

0.5 $ per hour 10 $ per hour

Theories and Labor Migration

Human Capital Theory:

expected rewards for human capital at the places of origin and
destination.

Home Country: Host Country:

Low salary; High salary;
Less respect; More respect;
Less reward; More reward;
Unworthy Worthy
sacrifice. sacrifice.
Theories and Labor Migration

Social Capital Theory:

social networks reduce the costs and risks of movement and
increase the expected net returns to migration.

Financial support;
Housing;
Find Jobs;
Social Adjustment;
Etc.
Theories and Labor Migration

The New Economics Theory:

minimizing risk factors of economic uncertainty.
Unstable Economy;
Fluctuation of Ex. Rate;
High Inflation Rate.
WHY ME?
Theories and Labor Migration

Cumulative Causation Theory:

the effect of remittances on inequality;
the effect of remittances on out-migration (investment).
Theories and Labor Migration

Segmented Labor Market Theory:

the existence of demand for foreign labor and employment
opportunities in the destination country.
Theories and Labor Migration

World Systems Theory:

the process of economic globalization in the form of foreign
direct investment creates migration.
Theories and Labor Migration

Country Risk Factors:

Forced migration;
Political uncertainty and violence.

Actually, I am here to find employment.

Ha, ha, ha !!!
Quiz

What is the role of information and communications

technology (ICT) in international labor migration?
Economic Growth and Labor Migration
GDP Growth

Year
Democracy and Labor Migration
Democracy

Year
Demography and Labor Migration
Migration

Working Age
Brain Drain
Since 1950s and 1960s large numbers of scientists
technicians, doctors have moved from developing to
developed countries;
1983-1988 more than 200 well-known scholars in the field
history, philosophy, political science left British Universities
to take positions at top US universities;
With the collapse of communism in late 80s early 90s there
was a huge exodus of Russian scientists;
Foreign students get degrees and choose to remain abroad.
Quiz

What are some positive and negative effects of brain drain to the
country of origin?
Competition in Job Market

Immigrants: Natives:
Low salaries; Higher salary;
Less preferences; More preferences;
No complaints; More complaints;
Readiness for Unwillingness for
any tasks. particular tasks.

Causes:
Xenophobia;
Racism;
Hatred.
Quiz

What is the role of labor migration in the demographic changes

of developed countries?
References
Modern Labor Economics, Theories and Public Policy, 12th edition, Ronald G.
Ehrenberg, Robert S. Smith, Pearson;
Contemporary Labor Economics, 10th edition, Campbell R. McConnell, Stanley
L. Brue, David A. Macpherson, McGraw-Hill International Edition;
Labor Migration, 5th edition, Borjas, McGraw-Hill International Edition.