The impacts of labor migrations on Macau economic development

Abstract

This paper uses 2003-2011 quarterly data to analyze the effect of labor migrations on Macau economic development by studying the manufacturing, constructing, tourism and other services industries with Cob-Douglas production model. This paper finds the manufacturing industry has very little positive contribution to Macau economy during the industrial transformation. And the foreign labors have higher positive impact than local labors in constructing industry, while the local labors play more important roles in tourism and other services industries. The findings imply the labor migration meets the long-term benefit for Macau's benefits and development. And the Macau government needs to set up labor migration policy based on various industries' demand and to improve human resources structures to guarantee the sustainable development of Macau economy.