Internal Migration in Thailand and Vietnam

Migration and its positive implications for social and economic development have increased in recognition and importance in the context of regional and national development. In addition, while international migration in the wake of globalization has received most academic attention, the World Development Report 2009 points out that the largest flows of people take place within nations. This internal migration can be an important driver of urbanization, which in turn facilitates economic growth by giving rise to agglomeration economies within cities and improving the allocation of labor. Furthermore, migrants may form networks that ease the flow of capital and knowledge. These mechanisms enhance economic development in the home and destination area simultaneously. This book analyzes the mutual relationship of internal migration patterns and regional economic development in Thailand and Vietnam. In particular, this study contributes to three areas of migration research: notably the spatial patterns of migration over time, the migration decision in a multilevel perspective and for varying destinations, and the determinants and consequences of internal return migration. The empirical findings indicate changing internal migration patterns away from the major centers Bangkok, Ho Chi Minh City and Hanoi to intermediate sized cities in Thailand and Vietnam. This new migration pattern is determined by the destination choice of new migrants as well as by the return decision of existing migrants. Analyzing the migration decision using multilevel regressions shows that in particular educated individuals are influenced in their migration decision by the regional nonfarm opportunities. Increasing nonfarm opportunities in intermediate cities may therefore shape a new pattern of migration in both countries. Finally, results from multinomial regressions indicate that internal return migrants who move back to other destinations than their home villages (e.g. intermediate cities) are highly educated and bring back new knowledge to their home regions. In addition, they are positively influenced in their return decision by growing nonfarm sectors in their home regions and engage in nonfarm activities after their return. This helps to diversify the economy and to fill existing shortages for qualified labor within the home regions – and may foster future regional economic growth.