ANALYSIS OF ASEAN-JAPAN LABOUR FLOWS

Abstract

In recent years, bilateral trade between Asean and Japan and Japanese foreign investment in the region have been increasing. At the same time, labor flows between these countries have also experienced unprecedented increase. This study aims to analyze the relationship between labor flows and the volume of bilateral trade, Japanese investment in and ODA to the region. The testing of this relationship is made possible empirically, using the regression method. For Asean, trade and ODA flows are complementary to Japanese labor flows to Asean. However, the relationship between Asean labor flows to Japan, and Japanese foreign investment, ODA and trade flows is less conclusive. The relationship between Japan-Singapore labor flow and the transfer of technology is also described. In order to attract Japanese investors in Asean, there has been an increasing emphasis on the transfer of "Japanese-style humanware" to the workplace. This is to inculcate Japanese business philosophy into the workers to provide an available workforce that meets the needs of the Japanese MNCs. We look at the case of Singapore, which cooperative efforts with the Japanese government has resulted in the setting up of various training centres. The past eight years have also seen an increase in flows of Singaporean trainees and Japanese experts, especially in the area of Human Resource Development.