System Dynamic Study of Nepalese Labors Migration Trend to Malaysia
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This thesis deals about the dynamic of the migratory trend of Nepalese labors from Nepal to Malaysia. Though the remittances contribute significantly to Nepal’s national domestic product (GDP), the higher rate of labor migration is problematic concern including labor shortage in Nepalese labor market. The labor shortage mainly in agriculture and construction is high concern. On average more than 1500 Nepalese labors leave the country daily for employment. The recent official record shows that about 2.5 million Nepalese labors work abroad. Officially, the Malaysian labor market was open for Nepalese labors in 2001 however, now Malaysia constitutes about 40 percent of total international labor migration from Nepal. The earning gap effect and effect of labor migration cost are accounted to drive the fractional migration rate and finally to the labor migration rate. The low earning rate and wage rate in Nepal than in Malaysia are push factors for Nepalese labors to migrate. On other hand, low job creation rate in Nepal is crucial factor of the labor emigration. Additionally, the social network effect on the labor migration cost also plays role to take the decision of the labor migration. The labor migration increases if both effects are increased however, the increment in the potential Nepalese labors also changes the migration rate. Once the GDP in the country is increased the earning gap decreases that lowers the migration rate. The government policy initiative to increase the GDP through employment generation is proposed to avoid the higher rate of the migration. The policy implementation comprises particularly the training component relating to the entrepreneurship, improved cropping method to increase agricultural yields. The implementation challenges including borrowed money payback is the major concern of the policy though the model does not deal about it extensively. This thesis is organized mainly in five sections with relevant sub heading. The introduction deals about the problematic nature of the labor migration from Nepal while the theoretical backing of the thesis and relevant studies relating to the migration is in the literature review section. The system dynamic method and research design is shortly introduced in the research design and methodology section. The result and analysis section deal the simulation results with causal explanation of variables. The policy proposed, a brief implementation outlines including challenges are shortly described in the policy design section. The concluding remark with a few points of recommendation is presented in the conclusion section.
PublisherThe University of Bergen
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