By Masami Ishida (eds.)
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Additional resources for Border Economies in the Greater Mekong Subregion
Economic integration progresses further, and the two countries are integrated to such an extent that they are the same country. In such a circumstance, the free cross-border movements of production factors such as people, goods, money, technology, and information are facilitated. This means that firms decide to locate the factory after seeking an optimized location in the integrated countries. In this case, the firms are unlikely to choose the border areas. It is unknown whether the firms can procure labor forces in border areas, as the labor forces move to the metropolises after seeking higher wages.
For the expansion of trade between metropolises such as Bangkok, Hanoi, Ho Chi Minh City, and Kunming can surpass the trade between the GMS Middle-income Countries/Regions and the CLM countries as the result of the improvement of the CBTI and the elimination of border barriers. According to the gravity model, the quantity and amount of bilateral trade are directly proportional to the economic size as expressed by the population and GDP; while, on the other hand, they are inversely proportional to the distance between the two countries.
Part II introduces the case studies in detail by major border area, and Part III picks up the discussion not touched on the previous chapters while also examining the challenges for developing border economic zones. 3 of this chapter: the movements of residents who live in the vicinity of borders; the movements of tourists; and the movements of labor forces. In terms of the cross-border movements of labor forces, the wage gaps and the unbalances of the supply and demand of labor forces in the respective countries cause the migration of illegal workers.