Economic Manifestation

of Globalization

Course: Ekon3065
Lecturer: Mārcis Dzelme
Structure
• Economic Globalization
• International Trade – Movement of Goods and Services
• International Investments – Movement of Capital
• Migration – Movement of People

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 Economic
Globalization

Flow of G & S Flow of Capital Flow of People

International Trade International Investments Migration

Increasing interdependence of countries Globalization, 2011, 8:10 min.

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Definition
… a person who moves away from his or her place of usual residen
ce, whether within a country or across an international border, tem
porarily or permanently, and for a variety of reasons

Key Migration Terms

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Definition 2
The term includes a number of well-defined legal categories of people:
• migrant workers
• persons whose particular types of movements are legally-defined, such as
smuggled migrants
• as well as those whose status or means of movement are not specifically
defined under international law, such as international students

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• The number of international migrants globally in
2019 was 272 million or 3.5% of the world’s
population
• India continued to be the largest country of origin
of international migrants with 17.5 million
• The top destination country remained the United
States - 50.7 million international migrants
• The number of migrant workers declined slightly in
high income countries while increasing elsewhere
• Globally, male migrant workers outnumbered
female migrant workers by 28 million in 2017 - 96
m male and 68 m female
• International remittances increased to USD 689
billion in 2018
• The global refugee population was 26 million in
2018
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Key figures from the WMRs of ‘00 & ‘20

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Labour Migration
Labour migration is defined as the move­ment of
persons from their home State to another State for
the purpose of employment

International labour migration is used as a generic

term to refer, in general, to concepts related to the
process and outcome of international labour
migration, especially to:
a. International migrant workers
b. For-work international migrants
c. Return international migrant workers

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International Migration Outlook
• It analyses developments in migration movements and
policies. It also examines the evolution of labour market
outcomes of immigrants in OECD countries
• Outlook 2019 includes two special chapters, one on the
contribution of temporary migration to the labour
markets of OECD countries and the other on the long-
term integration effects of family presence
• Outlook 2020 is to be published on Oct.19th, 2020. It
includes a special chapter on the impact of migration on
the structural composition of the economy
• The report also contains country notes and a statistical
annex

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Migration Flows by Category of Entry
• permanent movements broken down into labour, family, humanitarian
and free mobility
• the main channels of temporary labour migration: seasonal workers,
working holidaymakers, trainees, intracompany transferees and posted
workers
• international mobility of foreign students
• asylum seekers

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Permanent Migration
… is when someone moves from one place to another and has no plans to
return to their original home
• Migration flows to OECD countries +2% - about 5.3 million new permanent immigrants
• Inflows into the US -3%, with around 1.1 million persons obtaining permanent resident
status. Inflows into Germany -2%
• Admissions of permanent residents in Canada rose sharply to reach more than 320 000
• The UK received fewer new migrants in 2018, with a more pronounced decline among
migrants from other EU countries
• In France, permits granted to non-EU nationals continued to increase to just over
250 000
• Large increases in migration flows were registered in Korea and Spain

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Temporary Labour Migration
… is migration to a country that is not intended to be permanent, for a
specified and limited period of time, and usually undertaken for a specific
purpose 
• More than 4.9 million labour migrants entered OECD countries through temporary
labour migration programmes in 2017
• Low- and medium-skilled workers employed notably in agricultural activities,
construction, manufacturing and freight transport sectors
• Highly-skilled migrant workers in high-skilled occupations in the IT or health sectors,
some of which are sent abroad by multinational companies as intra-company
transferees
• There are significant numbers of workers posted on temporary missions inside Europe -
posted workers
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Temporary Labour Migration - 2
• Poland was the top destination country for temporary labour migrants
• In 2006, following sustained economic growth and growing labour
shortages, Polish authorities simplified the procedure for recruiting foreign
workers from neighbouring countries on a temporary basis.
• In 2017, more than 90% of the 1 121 000 new temporary labour migrants
in Poland were coming from Ukraine, mostly to fill vacancies in agriculture,
construction and industry. This represented an increase of 32% compared
to 2016.
• The number of entries of temporary labour migrants to Canada and the
Netherlands grew as well, by more than 20% in 2017.

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Temporary Labour Migration - 3
• Seasonal workers - 800 000 foreign workers were recruited under a seasonal work
permit in OECD countries. Seasonal workers represented 16% of the temporary inflows
of workers. In Spain, the number of seasonal workers admitted doubled in 2017, with
Moroccan women representing 84%
• Working holidaymakers - one out of ten permits delivered to temporary labour
migrants was a working holidaymaker permit to a young foreign national
• Trainees - the number of trainees admitted increased by 17%. This growth was driven
by an expansion of the Japanese programme - the 144 000 “technical intern trainees”
• Intra-company transferees - the number of intra-company transferees decreased
slightly. The sharp rise in flows to Canada and Japan did not compensate for the
decrease in the top two receiving countries: the US (-1% to 78 200) and the UK (-9% to
32 800)

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Temporary Labour Migration - 4
• Intra-EU/EFTA posted workers - are defined as salaried or self-employed workers who
generally carry out their activity in another member country while staying affiliated to
the social security system in their home country
• In the EU/EFTA, 2.7 million intra-EU/EFTA postings were recorded in 2017. Among the
60% for which the destination country is known, Germany (with 427 200 new postings
in 2017) and France (241 400) remained the top receiving countries. The number of
postings increased most markedly in France, Austria, the Netherlands, Spain and
Luxembourg

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Foreign Students
• The internationalisation of higher education over the past few decades has
resulted in significant movement of international students.
• In 2017, around 1 450 000 visas were granted to tertiary-level students.
There has been continuous rise over the past decade, driven by increasing
flows to European and Asian destination countries
• The number of residence permits issued to international tertiary-level
students in the US are dropping, in 2017 - 394 000. In particular, permits
for students from China and India, decreased drastically
• Among the top five destinations, flows have increased the most in Canada,
Japan and the UK

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Asylum Seekers
… is a person who has fled their home country because of war or other
factors harming them or their family, enters another country, and applies
for asylum, that is, international protection, in this other country
• The number of asylum applications to OECD countries - 1.09 million
• In 2018, Afghanistan, Syria and Iraq were the top three countries of origin of asylum
seekers, accounting for more than 20% of all applications to OECD countries. Close to
100 000 applications from Afghanistan, 80 000 from Syria and 60 000 from Iraq. Asylum
applications from Venezuela in 2018 increased
• Other key origin countries of asylum seekers in 2018 were El Salvador, Honduras,
Nigeria, Guatemala, Iran and Pakistan, reflecting the geographic spread of current
conflicts, political instability and humanitarian crises in the Middle East, Africa, and
Latin America

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 No specific homework for the next week

• Choose one of 36 OECD countries and have a look to country note from
International Migration Outlook 2019
• Compare it with the same country note from
International Migration Outlook 2020, that is to be released to the public next
Monday on Oct. 19th

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Paldies!