Migration for Business: A Case Study of Goa

Abstract

As the government eases out of economic activities and its role as an employer declines over time, there is a growing focus on attracting business and entrepreneurship and creating a conducive environment for their growth. Goa witnesses high rates of in-migration from the rest of India. However, census data reveal that of the total migration to Goa, only 2.7% of it is for business. This study uses census data to analyse the relative importance of population, distance, literacy and gross state domestic product (GSDP) in the volume and direction of migration flows through a gravity model analysis. In the case of population, it is observed that a high population at the source state means a higher degree of outmigration. This may be due to greater competition for scarce resources and lower costs of setting up business in the destination. The highest numbers of business migrants are from the neighbouring states of Maharashtra and Karnataka, which indicates that distance may be a deterrent to mobility, especially among women migrants. Educational attainment is not a very important determinant of migration for business. Similarly, economic growth does not seem to deter outmigration, indicating that better opportunities and cost-minimization at the destination may spur migration in spite of high economic growth in the home state. From the field study, it is observed that the majority of the businesspersons are Hindu males from the general caste. While economic factors serve as important push and pull factors, social factors are an important pull factor and determine the ease of settlement in the host state. They come to Goa for the long term and intend to settle here. They own land and housing. Though many are small businesses, through their consumption and investment activities, they play an important role in promoting growth in the state. The process of migration is self-sustaining as many bring their family members, relatives and neighbours and help settle them in business in related fields.