RESEARCH Migration for VIKALPA

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DOI: 10.1177/02560909241257323
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P. S. Devi
SES’s Sridora Caculo College of Commerce
and Management Studies, Mapusa, Goa, India
P.K. Sudarsan
Goa Business School, Goa University, Taleigao,
Goa, India

As the government eases out of economic activities and its role as an employer declines
Executive over time, there is a growing focus on attracting business and entrepreneurship and
Summary creating a conducive environment for their growth. Goa witnesses high rates of in-mi-
gration 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 migra-
tion 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.

KEY WORDS 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
Business Migrants 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
Outmigration
land and housing. Though many are small businesses, through their consumption and
Gravity Model 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
Framework
and neighbours and help settle them in business in related fields.
Remittances

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VIKALPA • VOLUME XX • ISSUE X • XX-XX 2024 1

M
igration is an important expression of the even after liberation, the spread of education and the
individual’s desire for sustenance, security lure of easy money from tourism-related activities
and a better standard of living. Across the resulted in the decline of maritime trade. Nevertheless,
world, it has been observed that when the pace of migration continues to thrive. While many Goan youth
economic growth and development accelerates, migrate to the Gulf and European countries, others
migration too increases. When effectively managed, work on foreign ships. At the same time, Goa attracts a
high number of migrants from other states.
migration brings great benefits to all stakeholders: the
migrant, his household, the sending state and, equally
Goa is the richest state of India with a per capita income
importantly, the receiving state. Though economies are of ₹4,67,998, three times that of the national average.
no longer self-sufficient, and mutual interdependence It is also the most urbanized state in the country with
is the order of the day, this too is beneficial and may 62.2% of its residents living in urban areas. A popular
be encouraged to satisfy human needs and wants in a tourist destination, the state received eight million
sustainable manner. tourists in 2018, more than five times its population. The
magnitude of tourism in the state can be understood
India has many instances of successful business from the fact that its area constitutes only around 0.11%
migrants, both national and international. If the Parsi of the total area of India and 0.12% of the national
community is today an integral part of the financial population.
and business capital of India, the Marwari businessman
is a permanent fixture in every corner of the country. Goa was traditionally an agrarian economy. Land
Businesses thrive in a free environment where political was owned either by absentee landlords or the
interference and bureaucratic interventions are minimal. ‘communidade’, that is, the village community, which
Like goods and services, capital and technology, was auctioned to the highest bidder each year. The
humans too must be free to migrate and find jobs as well original inhabitants of the land, belonging to upper-
as create jobs on the best possible terms. caste groups, shared the profits, while the actual tiller—
the tenant farmer—had little or no social security and
Gainful employment is a coveted goal, now more than could be evicted at will. The rapid expansion of mining
ever. As the government slowly exits from economic adversely impacted agriculture. The share of the
activities, business has the responsibility of providing primary sector was 8.4% only in 2017–2018. The services
jobs with decent wages, increasing productivity and sector witnessed rapid growth during the latter years
satisfying human desires. Chandrashekhar and Ghosh of the 20th century and the first decade of this century
(2019) report that during the period 2011–2012 to 2017– with a share of 64.3% in NSDP in 2009–2010. Though
2018, employment in central public sector enterprises tourism is an important industry in the services sector,
fell by 2.2 lakhs. Insecure workers, that is, casual and the growth in services was largely fuelled by transport,
contract workers, accounted for more than one-third communication and finance.
of the actual workforce. A comparison across countries
reveals that while public employees are 159 per 1,000 Presently, the secondary sector has been growing rapidly
population in Norway, 111 in case of Brazil and 57 in and has overtaken the tertiary sector. Its share increased
China, the corresponding figure for India was only from 31% in 2009–2010 to 56.6% in 2017–2018 while
16 per 1,000 population for 2015. This underlines the that of services came down to 34.9% (Economic Survey
important role that business has to play in employment of Goa, 2018–2019). Among the traditional industries
creation. of Goa are cashew processing and shipbuilding. The
state has 23 industrial estates which enabled the
expansion of manufacturing in non-traditional areas
GOA’S ECONOMIC PROFILE
such as pharmaceuticals, fertilizers, cement, electrical
In ancient and medieval times, the bustling ports of machinery, tyres and tubes and automobile accessories.
Goa, especially Gopakapattanam, boasted of thriving Mining, pharmaceuticals and iron and steel industries
trade relations with European and other foreign are based in the North Goa district, whereas mining and
traders. Given its strategic position on the western coast shipbuilding are common in South Goa. The closure of
endowed with rivers and natural harbours, Goa was mining adversely impacted employment and its impact
well suited for maritime activities. However, centuries was felt across sectors such as the shipping industry,
of colonial rule made the Goan economy stagnant and real estate, etc.

2 MIGRATION FOR BUSINESS: A CASE STUDY OF GOA

The present article aims to study migration from other (2016), immigrants in the United States are almost
states to Goa for the purpose of business. The specific twice as likely to be entrepreneurs compared to native
objectives of the study are (i) to identify the factors that US-born citizens. While it is possible that entrepreneurial
determine business migration to Goa and (ii) to under- individuals may exhibit a higher tendency to migrate
stand the experiences of the migrant business community and countries may favour highly motivated and capable
in Goa. individuals, the authors opine that discrimination
against immigrants in labour markets may compel them
The present study uses both census data and field to seek self-employment.
data. The paper is divided into five sections. The first
section gives the introduction and a brief profile of However, in an extensive study on immigrant
the Goan economy. The second section provides the entrepreneurship, Naude et al. (2017) argue that it
theoretical background and research methodology cannot be conclusively stated that immigrants are more
used in the study. In the third section, the features of likely to be self-employed compared to the natives. In
business migration to Goa have been analysed based fact, they face various forms of discrimination in labour
on census data. Gravity models have been constructed and consumer markets and, hence, may be prevented
to identify the determinants of migration using the from taking up entrepreneurship or conversely, pushed
variables of the population of the source state, distance into reluctant entrepreneurship. In a study that looks
between the source state and the destination, literacy at migrant entrepreneurship within the context of
rates and the GSDP of the source states. The fourth emerging economies, Guerrero et al. (2021) state that
section presents insights into the migration experience while being highly skilled migrants in a dynamic
of businesspersons who came to Goa from other states emerging economy does not guarantee success, it is
in the country. It is based on the findings of a field study a determinant of international and necessity-driven
covering 100 respondents. Their demographic profile, entrepreneurship.
the push–pull factors influencing their decision to
migrate, the role of networks, the economic impact of When militancy in Punjab led to violence, many business
migration, migrants’ perceptions about their adopted communities were forced to migrate (Bal, 2005). At the
state and issues of discrimination are described in same time, caste-based occupations weakened, and
this section. The fifth section presents the conclusions agrarian communities as well as those lower down the
derived from the study. social ladder were able to take up business activities.
Though individual motivations or region-specific
factors may explain some streams of business migration,
THEORETICAL BACKGROUND
it is important to note that institutional factors such as
According to classical theory, businesses will choose government policy, ease of doing business and access
to move to locations that offer the best conditions for to capital are important determinants that influence
achieving success. In contrast, neo-classical theories the migrants’ decision to take up business in the new
focus on considerations of cost-minimization or location. According to the findings of a study based in
profit-maximization. The implicit assumption that Sweden, female business owners show a slightly lower
businesspersons have access to complete information propensity to migrate (Niedomysl et al., 2019).
is incorrect as it is usually perceptions and not factual
information that govern the migration decision. It does Beyond considerations of pure material benefit, the
not recognize that decisions are often made under quality of life is also an important factor that influences
conditions of uncertainty (Pellenbarg et al., 2002). the decision to move. However, distance may be an
important deterrent in choosing a particular destination
Literature on migration for business shows that (De Vries, 2007). Once the move is made, immigrants
migrants are more likely to be entrepreneurial compared as well as in-migrants show a greater propensity to
to natives. This may perhaps be attributed to the fact engage in new business activity than lifelong residents
that they are less likely to be risk averse as migration (Levie, 2007). Also, when the migrant attains permanent
itself is a risky activity (Neville et al., 2014). A notable residency in the destination, there is greater diversity
feature of migration is that there are many success in industry selection. Instead of being confined to
stories of migrant entrepreneurs. Deller et al. (2019) find traditional business opportunities, he may also choose
that net migration rates have a strong positive impact businesses that require intensive investment such as
on business start-ups. According to Vandor and Franke manufacturing, construction and real estate (Shi, 2021).

VIKALPA • VOLUME XX • ISSUE X • XX-XX 2024 3

The desire to improve one’s economic position is an sourced from the migration tables of census reports. An
important factor that makes migrants take up business important constraint of census data is that qualitative
rather than wage employment. According to Raijman information on migration is not obtained. It does not
and Tienda (2000), migrants choose different pathways to talk about important secondary factors that influence
entrepreneurship depending on their country of origin. the decision to migrate. An emerging area of interest
Koreans were most likely to take up business because of in migration studies is the role of social networks in
a mismatch between their skill sets and the jobs available facilitating migration. However, the census data do not
in the labour market. They also seek employment in throw light on this aspect. One of the greatest benefits
co-ethnic firms and over a period, set up their own of migration and development is the remittances that
business. For second-generation Hispanics, acquiring lift families out of poverty towards better standards of
business through inheritance is common whereas pioneer living. This aspect too is neglected.
migrants seek opportunities in the informal economy. An
important constraint that non-natives face in conducting Information on reasons for migration was collected by
business in developed economies is the lack of command census since 1971. However, it was only in 1991 that
of English and they may not understand the local business ‘business’ was added as a reason. In the previous two
scene (Schak, 1999). periods, it was only ‘work/employment’. Since 1991,
economic reasons for migration have been classified
Community-level factors play an important role in into ‘work/employment’ and ‘business’. Hence, the
informal business, whereas previous capital attainment volume of migration has been assessed for the period,
and socio-economic status ease entry into formal 1991–2011 only. This information has been obtained
business (Sheehan, 2009). Migration helps households from Table D3: Migrants by place of last residence,
to overcome capital constraints, which in turn results in duration of residence and reason for migration; Census,
the proliferation of informality through migration. In 1991, 2001, 2011.
the case of return migration, in economically dynamic
communities, migrants are more likely to engage in In order to understand the factors that may have
business in the informal sector. They are more likely influenced these migrant inflows, a gravity model
to take up entrepreneurial activities than non-migrant analysis has been attempted. The variables included
households (Sheehan & Riosmena, 2013). are the size of the population of source states and the
distance between the source state and the destination,
In the case of Goa, in 2011, migration for business that is, Goa. These variables have been studied to
constituted only 2.7% of total migration from the rest of understand their influence on migration flows for
India into the state. The drastic fall in business migration business. Data on population have been taken from the
over the last three decades may be attributed to state respective census reports. Distance has been calculated
policy as well as public sentiment. In 2019, the village of as the distance between the capital city of the source state
Cana Benaulim in South Goa formally resolved a ban on and the capital city of Goa, that is, Panaji, in kilometres,
migrant-run tourist businesses. The resolution mentions: as given by Google Maps.

The interests of locals in traditional coastal occupations A log–log regression model was used to test the
and services like fishing, shack operations, tourist taxi hypotheses so that results may be analysed in percentage
operations, garment and jewellery business, salons and terms. The dependent variable is the number of business
massage parlours, restaurant business, etc., should be migrants to Goa from other states. A few states do not
protected and others should not be allowed to run these report any migration for business to Goa. However, we
activities, directly or indirectly. have taken it as 1 in order to estimate the log–log model.
A pooled OLS regression was used as the number of
The locals believe that the operations of the migrants states in each census period is limited.
change the demography and add burden to the limited
infrastructure. In addition to the study based on census data, a study of
100 self-employed persons was also undertaken using
purposive sampling. The intention was to identify and
DATA AND METHODOLOGY select in a non-random manner, a sample of migrants
The study uses secondary data to understand the extent that represent a cross-section of the population, which
of migration to Goa from other states in the country would logically be representative of the population.
for the purpose of business. These data have been This is because there is no comprehensive list of

4 MIGRATION FOR BUSINESS: A CASE STUDY OF GOA

migrants available from government agencies. Given Extent of Business Migration
that the proportion of short-term seasonal migration is
Before we look at migration for business, it would be
increasing, it is next to impossible to have an updated
useful to compare migration statistics for Goa with
list of migrants from other states.
those of India in order to understand the position of
migration in the state. It is seen from Table 1 that while
Though sampling for proportionality was not possible,
37.6% of Indians are classified as migrants, 78.2% of the
the relative ease of access to migrants from different
Goan population are migrants. While migrants from
states was considered to be indicative of the quantum of
other states are 12% for India, it is almost double at 24%
migration from each state. The findings from the sample
for Goa. Migrants from other states comprise 18.5% of
may be generalized for the business migrant community
the total population, the highest in the country. Goa is
in Goa. The respondents are from the two districts of
one of only eight states to have a higher proportion of
Goa: North Goa (57) and South Goa (43). The group is
male migrants, and this is perhaps because migration
quite diverse as far as the nature and size of the business
due to marriage is much lower at 17.6%. For India and
are concerned. This micro approach may be useful in
most other states, female migration is much higher and
understanding individual migration experiences, which
marriage constitutes the single-most important reason
will help in drawing conclusions about Goa as a host to
for migration. However, migration for business is very
businesspersons from out of state.
low in Goa at 2.7%, as is also the case with India at 1.6%.

Under reason for migration, census collects information

BUSINESS MIGRATION INTO GOA: AN
under various heads. Here, we look at only migration
ANALYSIS BASED ON CENSUS DATA
for ‘business’. Table 2 shows the volume of migration to
Usually ranked first among small states in economic Goa from other states in the country for the purpose of
and social indicators of development, Goa offers business.
employment opportunities to both, skilled and
unskilled job-seekers. While the informal sector sees Among total migrants, only 8.2% reported moving to
a high proportion of workers from out of the state, Goa for business in 1991. Among male migrants, while
migration for business is not very high in comparison to 13.5% cited business as the reason for migration, the
other reasons for migration. proportion was 2.7% only for female migrants. It is

Table 1: Extent of Migration.

Extent of Migration India Goa

Population classified as migrants 37.6% 78.2%

Migrants from other states as a percentage of total migrants 11.9% 23.6%

Migrants from other states as a percentage of the total population 4.5% 18.5%
Male migrants 43.9% 52.1%
Marriage as a reason for migration 31.1% 17.6%
Migration for business 1.6% 2.7%
Source: Census Report, 2011, Government of India.

Table 2: Migration to Goa for Business.

Total Male Female

Year No. % No. % No. %
1991 12,803 8.2 10,766 13.5 2,037 2.7
2001 4,609 2.01 4,167 3.4 442 0.4
2011 7,361 2.7 6,212 4.4 1,149 0.9
Source: Census Reports, 1991, 2001, 2011, Government of India.

VIKALPA • VOLUME XX • ISSUE X • XX-XX 2024 5

intriguing to observe that by 2001, these figures had accounted for nearly 80% of the business migrants,
dropped to just 2.01% before improving marginally to lending credence to Ravenstein’s laws of migration.
2.7% in 2011. There is a gendered pattern in business Kerala at third place trailed far behind. The five states
migration as it is observed that business migration together accounted for 92% of the total business
among females is extremely low and comprised less migrants in Goa.
than 1% of total female migration in 2001 and 2011.
In 2001 too, Karnataka and Maharashtra retained the
One reason for the fall in numbers from 1991 to 2001 two top positions. However, their share declined to
may be attributed to the attainment of statehood in May 57%. Uttar Pradesh now occupied third place while
1987. Goa was formerly a union territory. The policies Kerala slipped to fourth position. Uttar Pradesh has a
of the state underwent a change, and the promotion of higher percentage share, though the absolute numbers
the interests of the local populace, especially in matters came down, as was the case with Kerala too. Karnataka
of employment, is now a stated objective. This has been and Maharashtra continued to be the two top sending
accompanied by a slow rise in nativist tendencies and states of business migrants in 2011. Their combined
anti-migrant sentiments. Another important factor share marginally improved to 59%. Rajasthan has
may perhaps be that some of them experienced losses preceded Kerala, indicating a change in the composition
in business and preferred to take up wage or salaried of business migrants over time.
employment rather than bear the risks of business in an
uncertain environment. Table 4 shows the percentage share of migration for
business. The top sending states have been considered
Table 3 gives details of the top five sending states for for three census periods, 1991, 2001 and 2011. While
business to Goa for the Census 1991, 2001 and 2011. It the percentage shares have declined quite sharply for
is observed that in 1991, Karnataka and Maharashtra all states, Rajasthan shows a relatively higher share.
occupied the top two spots. This is not surprising as This may be indicative of the growing difficulties for
these two states share common borders with Goa and persons of non-Goan origin to set up business here.
account for the highest number of total migrants to the For Goa, economic reasons for migration have always
state. What is surprising is that these two states together been important. However, under economic reasons,

Table 3: Top 5 Sending States to Goa for Business (1991, 2001 and 2011 Census).

Census1991 Census 2001 Census 2011

State Total % State Total % State Total %
Karnataka 7,500 58.58 Karnataka 1,550 33.62 Karnataka 2,616 35.53
Maharashtra 2,686 20.97 Maharashtra 1,082 23.47 Maharashtra 1,737 23.59
Kerala 651 5.08 UP 430 9.32 UP 702 9.53
UP 492 3.84 Kerala 315 6.83 Rajasthan 511 6.94
Tamil Nadu 404 3.15 Rajasthan 225 4.88 Kerala 341 4.63
Total 11,733 91.62 Total 3,602 78.12 Total 5,907 80.22
Source: Census Reports, 1991, 2001, 2011, Government of India.

Table 4: Migration to Goa for Business as Percentage to Total Migration.

State 1991 2001 2011

Karnataka 9.8 1.4 2.2
Maharashtra 5.3 1.8 2.4
Kerala 9.03 3.1 4.1
Uttar Pradesh 10.4 3.7 3.5
Tamil Nadu 13.1 3.8 4.6
Rajasthan 16.9 8.8 10.6
Source: Census Reports, 1991, 2001, 2011, Government of India.

6 MIGRATION FOR BUSINESS: A CASE STUDY OF GOA

Table 5: Migration to Goa for Business: Rural–Urban Streams.

2001 2011
Place of Last Residence 1991 Rural Urban Rural Urban
Rural 6,521 337 1,375 607 2,183
Urban 6,154 462 2,353 549 3,531
Unclassifiable 128 82 491
Source: Census Reports, 1991, 2001, 2011.

Table 6: Duration of Residence.

Duration of Residence 1991 2001 2011

<1 year 1839 274 565
1–4 years 3244 1,045 1,484
5–9 years 2428 892 1,447
10 years and above 5,104 2,398 3,628
Unclassifiable 188 – 237
Source: Census Reports, 1991, 2001, 2011.

the number of migrants for work/employment far Duration of Residence

exceeds that for business. While ‘work/employment’
constituted 27.3% of all reasons for migration in 2011, Analysing the duration of residence will enable us to
for ‘business’ it was only 2.7%. understand if the migrants are here for the long term.
This has important policy implications for a small state
like Goa. Table 6 shows that for all three census periods,
Rural–Urban Migration Streams a majority of the migrants have been residing in Goa
for 10 years or more. This is followed by 1–4 years of
The four main streams of migration—rural to rural, stay. Migrants who have been in Goa for less than a
rural to urban, urban to rural and urban to urban— year comprise the smallest group. Those seeking work/
provide important insights into the nature of migration. employment may move often as better opportunities
The general notion is that there is widespread migration open up; however, migration for business is generally
from rural to urban areas. This is due to a decline in for the long-term due to the cost of setting up a business
agriculture and a lack of viable alternative employment unless, of course, business failures compel them to move
opportunities in the villages. It is assumed that in the or seek other forms of employment.
urban areas, there will be more economic opportunities
and year-round employment. In the case of business
Determinants of Migration: A Gravity Model
too, the implicit assumption is that businesses will do
Framework
better in urban areas compared to rural areas. Hence,
it is important to understand migration streams in the This study uses census data to estimate gravity models
case of business. in order to understand the relative importance of select
variables in determining migration flows.
From Table 5, it is observed that in 1991, the number
of migrants from rural areas is higher than that from The early gravity models on migration used the variables
urban areas. However, during the next two decades, of population and distance to understand the direction
migration for business is higher from urban areas. In of migration flows. Here too, an attempt was made to
the destination too, business migrants mostly prefer find the influence of these two variables on migration
to settle in urban areas. This asserts the fact that urban from other states to Goa for the purpose of business and
areas are more robust and thriving economic centres. It work. A pooled OLS regression was run to compare the
is to be noted that the number of individuals categorized results of the effects of these two variables on migration
as unclassifiable is increasing over time. for work and migration for business separately. A similar

VIKALPA • VOLUME XX • ISSUE X • XX-XX 2024 7

Table 7: Results of Model 1: Migration for Business and Work.

Coefficient Std. Error t Ratio P Value

Business Migrants Const 2.75591 3.26546 0.8440 .4012
l_Pop 0.790688 0.0868394 9.105 <.0001***
l_Dist −1.65156 0.297005 −5.561 <.0001***
Adjusted R-squared = 0.757729
F(2, 81) = 130.7955
Migrants for
Work/employment Const 3.50572 3.11141 1.127 .2632
l_Pop 0.814903 0.0827426 9.849 <.0001***
l_Dist −1.52954 0.282993 −5.405 <.0001***
Adjusted R-squared = 0.773174
F(2, 81) = 142.4599
Notes: *** indicates that if P value is less than 0.01, it is statistically significant at 1% level.

exercise in the case of male and female migration for This is an extended gravity model and includes the
business has been attempted. It is already seen that there additional variables of literacy and gross domestic
is a gendered pattern in the case of business migration. product of the source states. It is hypothesized that the
Hence, it is important to assess if these factors influence higher the literacy rate, the higher will be outmigration.
male and female migration differently. On the other hand, in the case of the gross domestic
product of states, it is hypothesized that the higher
the GSDP of the source states, the lesser will be
GRAVITY MODELS AND RESULTS outmigration of businesspersons. Hence, it is expected
Two gravity models (Models 1 and 2) are specified and that the coefficient of literacy will be positive, whereas
estimated to identify the determinants of migration. that of GSDP will be negative.
Model 2 is an extended model.
The results of Model 1 are given in Tables 7 and 8, and
Model 1: ln Mi = β0 + β1lnPopi + β2lnDisti + ui the results of Model 2 are given in Table 9.

lnMi = Natural log of immigrants from various states Here, an attempt has been made to understand if the
variables of population and distance affect migration
lnPopi = Log of the population of other states
for business and migration for work in similar ways or
lnDisti = Log of the distance of other states to Goa if there are significant differences. It is observed from
Table 7 that the coefficients of population and distance
Model 1 hypothesizes that the volume of the population
are statistically significant at 1%, both in the case of
of the source state is directly related to the volume
migration for business as well as migration for work.
of outmigration from the state. On the other hand,
As hypothesized, the coefficient of the population has a
the distance between the two regions is inversely
positive sign. This implies that the higher the population
related to the volume of migration. In other words, it
of the source state, the higher will be outmigration
is hypothesized that people move in larger numbers
from that state. When the population increases by 1%,
across shorter distances. A log–log regression model
outmigration increases by 0.79% in the case of business
is used to test the hypotheses. It is expected that the
and 0.81% for work. On the other hand, the coefficient
coefficient for population will have a positive sign while
of distance has a negative sign. This indicates that there
the coefficient for distance will have a negative sign.
is a fall in the volume of migration with an increase
in the distance between the place of origin and the
Model 2: ln Mi = β0 + β1lnPopi + β2lnDisti + β3 lnLiti + β4
destination. While a 1% increase in distance causes a fall
lnGSDPi + ui
in migration for business by 1.65%, migration for work
lnLiti = log of literacy rate drops only by 1.53%. Adjusted R-squared is 0.757 and
lnGSDPi = Log of GSDP. explains 76% variation in business migration, whereas it

8 MIGRATION FOR BUSINESS: A CASE STUDY OF GOA

Table 8: Results of Model 1: Migration for Business (Females and Males).

Coefficient Std. Error t Ratio P Value

Const 9.52242 2.92819 3.252 .0017***
Female migrants l_Pop 0.311967 0.0778702 4.006 .0001***
l_Dist −1.71947 0.266329 −6.456 <.0001***
Adjusted R-squared = 0.612160
F(2, 81) = 66.50286
Male migrants Coefficient Std. Error t Ratio P Value
Const 2.32427 3.23590 0.7183 .4747
l_Pop 0.792672 0.0860534 9.211 <.0001***
l_Dist −1.61511 0.294316 −5.488 <.0001***
Adjusted R-squared = 0.758840
F(2, 81) = 131.5847

Notes: *** indicates that if P value is less than 0.01, it is statistically significant at 1% level.

Table 9: Results of Model 2.

Coefficient Std. Error t Ratio P Value

Migration for Const −1.02557 4.86377 −0.2109 .8335
business
l_Pop 0.848792 0.102390 8.290 <.0001***
l_Dist −1.62608 0.299686 −5.426 <.0001***
l_Lit 0.754951 0.713668 1.058 .2933
l_GDP −0.0478071 0.0574085 −0.8328 .4075
Adjusted R-squared = 0.755804
F(4, 79) = 65.22261
Migration Coefficient Std. Error t Ratio P Value
for business Const 5.52049 4.33525 1.273 .2066
(females)
l_Pop 0.383383 0.0912638 4.201 <.0001***
l_Dist −1.69479 0.267121 −6.345 <.0001***
l_Lit 0.800879 0.636117 1.259 .2117
l_GDP −0.0641151 0.0511701 −1.253 .2139
Adjusted R-squared = 0.613756
F(4, 79) = 33.97248
Migration for Coefficient Std. Error t Ratio P Value
business (males) Const −1.72927 4.80770 −0.3597 .7200
l_Pop 0.860186 0.101210 8.499 <.0001***
l_Dist −1.58900 0.296231 −5.364 <.0001***
l_Lit 0.810275 0.705439 1.149 .2542
l_GDP −0.0583723 0.0567465 −1.029 .3068
Adjusted R-squared = 0.758138
F(4, 79) = 66.04272
Notes: *** indicates that if P value is less than 0.01, it is statistically significant at 1% level.

is 0.773 in case of migration for work and explains 77% Though the size of the population and distance influence
variation in outflow due to changes in population and migration for business and for work in similar ways, it
distance. is observed that when there is an increase in population,

VIKALPA • VOLUME XX • ISSUE X • XX-XX 2024 9

outmigration for work is higher. Further, distance as a assessed separately for males and females, it is 0.76%
deterrent to migration is less pronounced in the case of for males and 0.61% for females. In the case of distance,
work than it is for business. This may be explained by a 1% increase in distance brings down outmigration by
the fact that the volume of migration for work to Goa 1.63%. For males, it is 1.59% and for females it is 1.69%.
is much higher than that for business, which is quite It is surprising that even with advances in transport and
negligible. This may also mean that it is easier to obtain communication facilities that have reduced the cost of
wage employment in Goa than to start a business. The travel, distance still influences the choice of destination.
locals usually decline low-end jobs. On the other hand, Adjusted R-squared is 0.755 and explains 76% variation
with education still in the nascent stage in the state, in migration flows due to changes in these four factors.
highly skilled migrant professionals find it relatively For women, the corresponding figure is 0.613 and
easy to find jobs. Both these forms of employment fill explains a 61% change in outflows due to changes in the
an important gap in the local economy. In the case of four factors under consideration.
business ventures by migrants, both, the state and the
public, show growing hostility. This is more evident in
BUSINESS MIGRATION INTO GOA: AN
the case of small businesses.
ANALYSIS BASED ON FIELD DATA
As observed in Table 8, the coefficients of population A survey was conducted of 100 self-employed
and distance are statistically significant at 1% in the case migrants in Goa selected on the basis of purposive
of both male and female migration. The positive sign sampling. These individuals are from the two
of the population coefficient indicates that outmigration districts of Goa: North Goa (57) and South Goa (43).
increases with an increase in population, whereas the The respondents were selected according to the
negative sign of the distance coefficient indicates that National Sample Survey Office (NSSO) definition of
long distances hinder mobility. While a 1% increase self-employment. NSSO defines the self-employed as
in population size leads to an increase of 0.79% in
outmigration among males, female migration increases Persons who operate their own farm or non-farm
only by 0.31%. On the other hand, a 1% increase in the enterprises or are engaged independently in a profession
or trade on own-account or with one or a few partners.
distance reduces migration by 1.62% in the case of males
The essential feature of the self-employed is that they have
and 1.72% in the case of females. Adjusted R-squared is
autonomy (i.e. how, where and when to produce) and
0.758 for males and explains 76% variation in migration economic independence (i.e. market, scale of operations
flows due to changes in population and distance. For and money) for carrying out their operations.
females, the adjusted R-squared is 0.612 and explains
61% variation in migration flows. Among the respondents surveyed 28 are from Karnataka,
12 each from Rajasthan and Kerala, 10 from Gujarat and 6
From these results, it may be concluded that social from Maharashtra. These five states account for 68% of the
restrictions on the mobility of women are still strong. self-employed persons. They are engaged in a variety of
The onus of providing for the family is mostly on the businesses ranging from plumbing and carpentry to the mine
male members, and if there are no suitable openings owner with 26 trucks. There are fruit and vegetable vendors,
available in the home state, they are compelled to a fisherman who owns a few boats and a trawler, a beautician,
venture out to other places in search of opportunities. an interior designer, jewellers and tailors. Others own
Though migration for business is quite low even for grocery shops, sweet shops, furniture outlets, a clock factory,
males, it is obvious that barriers to movement are much stationery shops, photocopying units, transport company,
stronger for women. travel company, general stores, hotels, mobile and mobile
accessories shops, sawmill, plywood and hardware shops,
It is seen from Table 9 that the coefficients of literacy catering, coir and coir products, handicrafts and real estate.
and GDP are found to be statistically insignificant. Some among them are contractors.
This means that education is not an important quality
for conducting business. Also, GDP does not seem to All the mithai shops are owned by Rajasthanis. They also
influence outflows. On the other hand, as expected, the own mobile shops. The Gujaratis are mostly in the hardware
coefficients of population and distance are statistically and plywood businesses and real estate. All the respondents
significant at 1% in all three cases. A 1% increase in from Udupi are in the hotel business, whereas nearly 80%
the population size of the source state brings about a of the respondents from Kerala are contractors. The interior
0.85% increase in outmigration for business. When designer from Mumbai and the beautician from Mizoram

10 MIGRATION FOR BUSINESS: A CASE STUDY OF GOA

Table 10: Demographic Profile.

Male Female
Gender 94 6
Marital status at migration Married Unmarried
24 76
Religion Hindu Muslim Christian Sikh
75 18 5 2
Caste (for Hindus only) General OBC SC ST
51 18 1 5
Age when first migrated <20 21–25 26–30 >30
57 24 16 3
Education Less than SSC SSC and HSSC Diploma and Postgraduate/professional
graduate degree
54 24 17 5
Family size 01 02–05 06–10 >10
15 17 66 02
Distance from place of origin Up to 1,000 km 1,001–2,000 km 2,001–3,000 km >3,000 km
51 36 11 2

seem to reinforce stereotypes. There are some inspiring rags- are from regions close to Goa. There is a tendency for
to-riches stories too. Naresh Bhai, a Gujarati, came to Goa the numbers to dwindle with an increase in distance.
as a 14-year-old with ₹15 in his pocket. When he got down
at Madgaon railway station, all he had was the address of
Push–Pull Factors Influencing Migration
a neighbour from back home who owned a sawmill here.
Despite not knowing a word of Konkani, he managed to find The forces of attraction and repulsion that exist at the
him and began working for him. Today he owns four sawmills destination and place of origin, respectively, compel
and three other businesses, a luxurious two-storey bungalow individuals to leave their home and venture out in
and a few cars. A contractor from Kerala came here after search of greener pastures. The various push factors
an agent who promised to take him to the Gulf duped him. cited by the respondents for moving out include lack
Having borrowed heavily from relatives and friends to pay the of employment (37), poor financial situation (26),
agent, he fled to Goa. Today his annual income is in crores and low wages (4), inadequate land holdings (3), natural
he has repaid all his creditors with interest. A bhelpuri-wala disasters (1), religious/caste persecution (2), family
from Uttar Pradesh began by selling bhel on a cart. He now disputes (8), marriage (2) and others (17).
owns three shops, two of which he lets out on rent.
The pull factors cited for moving to Goa are better
Below is an account of their work and experiences in employment opportunities (42), better working conditions
Goa: (12), presence of family or friends (13), followed family/
friends that came here earlier (9), safe and congenial
atmosphere (8), higher incomes (4), proximity to
Demographic Profile
hometown (3), better facilities (2) and others (7).
From the demographic profile of the respondents, the
commonalities, if any, among the persons who came to It is evident that economic factors predominate in both
Goa for business may be identified. push and pull factors. However, it is interesting to note
that social factors such as the presence of family and
Table 10 shows that most of the self-employed persons friends, following family or friends who came earlier
in Goa are male, Hindu and belong to the general caste. and proximity to hometown also exert an important
Most have low educational attainment. They generally influence on the choice of destination. Thus, it may
migrate at a younger age. The propensity to migrate be stated that socio-economic factors are important
diminishes with increasing age. Most of the migrants determinants of the migration decision.

VIKALPA • VOLUME XX • ISSUE X • XX-XX 2024 11

Table 11: Economic Impact on the Goan Economy.

Indicators Yes No
Regular savings 74 26
Savings invested in Goa 69 5
Own accommodation in Goa 65 35
Rented accommodation 35 65
Possess land in Goa 26 74
Possess ration card in Goa 66 34
Possess voter card in Goa 74 26
Possess Aadhar card with Goa address 89 11

Table 12: Perceptions About Goa vis-a-vis Native State.

Better Same Worse

Employment 77 17 6
Income 76 18 6
Working conditions 79 18 3
Housing facilities 61 25 14
Educational facilities 64 22 14
Public amenities 63 16 21
Safety and security 84 14 2
Governance 62 26 12
Quality of life 78 14 8
Climate 65 26 9

Economic Impact of Migration on the Goan Perceptions about Goa

Economy
It is important to understand the attitude of the migrant
The benefits from migration have been assessed for businesspersons towards the host state. The insights
the local economy. Businesses create jobs, generate gained can help in shaping migration policies that
income and demand and, in turn, boost the volume of protect the interests of all stakeholders.
consumption and savings.
While a majority of the respondents have a favourable
Table 11 shows that most people save and invest their opinion about Goa, as observed from Table 12, a
money within Goa. They generate demand in the few believe that housing facilities, governance and
housing sector, which is a core sector for economic provision of public amenities are better back home. An
growth. Most have acquired important documents, important concern is the high cost of living in the state.
which imply that they have migrated to Goa for the Public transport, especially taxi fares, and rents are
long term. This has important implications for the Goan quite exorbitant in the state. Housing, education and
economy. If the scale of the business is large, it generates governance are areas identified where the state needs
employment opportunities. Goa is a consumption- to improve its performance.
driven economy. Hence, in addition to the provision of
essential commodities and services, the migrant business
Issues of Discrimination
community generates consumption demand also, thus
raising aggregate demand levels in the state. Most of the Though empirical evidence suggests that migration
respondents were reluctant to reveal their income and greatly benefits the receiving region too, it is observed
expenditure. However, it may be safely assumed that the world over that there is a growing tide of resentment
their consumption, savings and investment activities against the migrant and he is viewed with suspicion
generate additional demand in related sectors. and hostility (Table 13). This is natural given the rising

12 MIGRATION FOR BUSINESS: A CASE STUDY OF GOA

Table 13: Issues of Discrimination.

Type of discrimination Yes No

Professional setbacks due to ‘outsider’ status 17 83
Discrimination at workplace 20 80
Hostility from locals due to ‘outsider’ status 19 81
Verbal abuse from locals 12 88
Physical abuse from locals 3 97
Racial slurs 4 96

competition in all sectors and the relative scarcity of (9), savings (8), education (3), debt repayment (2) and
all resources, natural and material. It is important for purchase of land/vehicle (1).
migrants to feel safe in their adopted land. The spirit
of cosmopolitanism (Tumbe, 2018) must replace nativist
tendencies. PERPETUATION OF BUSINESS MIGRATION

This study is part of a bigger study that looks at The process of migration is self-sustaining. Networks
economic migrants employed in other sectors of provide useful information about conditions of work.
the economy. It was found that the self-employed Twenty-two respondents said that their choice of
are more prone to discrimination and hostility. The destination was influenced by the presence of family
corresponding figures for those employed in the and friends here and 66 respondents stated that they
unorganized, private and government sectors are received immense support from the existing network
negligible. A jeweller from West Bengal narrated how to establish their business. In return, they have helped
he was falsely implicated in a case by local business others from their hometown to come here and set up
rivals and thrashed by the police. He was quite upset business. Fifty-three businessmen said that they have
that even after proving his innocence, the police did helped others from back home to come here and set up
not express any remorse. Racial slurs include terms shop. While 39 persons have brought up to 5 individuals
such as ‘bhailo’ (outsider) and ‘ghati’. Ghati actually each, another 7 individuals have brought between 6
refers to the inhabitants of the Ghats. It is now used as and 10 persons here. Seven others have brought more
a generic term to describe all non-Goans. than 10 persons. The majority (46) have helped these
individuals set up businesses in a similar line, whereas
A few businessmen said that, overall, the situation is in the case of the remaining, the persons they brought
much better in Goa as compared to other states with very here chose a different line of employment. It is mostly
few instances of actual violence. Many acknowledged the contractors and shop owners who bring their
the fact that in their home states too, the migrants are relatives and neighbours here. They initially work for
not treated fairly. them and over a period of time, accumulate sufficient
experience and capital to set up their own business.
Remittances
The greatest benefit for the migrant’s household back
CONCLUSION
home is the improvement in the standard of living. This
is achieved through the remittances sent by the migrant. Statistical data from census reports show that migration
Sixty- four persons said they send remittances home. is an important characteristic of the demographic profile
Among the 36 who do not send remittances, the reason of Goa as compared to India as a whole. Migrants
cited was either that the entire family had moved here from other states constitute 23.6% of all migrants in
or that their parents were no longer living. Another the case of Goa, whereas it is less than 12% for India.
reason was that the family was financially well off and While the proportion of female migration is generally
did not need support. Those who send remittances do greater due to marriage, Goa is one among only eight
so regularly (24), intermittently (30) or only when they states to report a higher proportion of male migration.
visit home (10). These remittances are used for various Migration for business is quite low for both, India as
purposes by the households. The primary use of well as Goa with the figures standing at 1.6% and 2.7%
remittances includes subsistence (38), medical expenses only, respectively.

VIKALPA • VOLUME XX • ISSUE X • XX-XX 2024 13

The highest number of migrants for business hail from educational attainment is not very important, as 50%
the neighbouring states of Karnataka and Maharashtra, have studied only up to SSC or below. Seventeen per
which share common borders with Goa. However, when cent never went to school. Most migrate at a young
compared to other reasons for migration, it is observed age: 81% migrated when they were less than 25 years.
that migration for business is negligible. They mostly For the vast majority, Goa has been the first place they
migrate to urban areas in Goa, an indication of the migrated to. People generally migrate to closer areas.
prevalence of better opportunities and facilities in the Economic reasons comprise important push factors
developed regions. Further, it is observed that during whereas social factors assume growing importance in
all the three census periods under consideration, the the case of choice of destination. Many secured jobs here
maximum number of migrants have resided in the state initially through their networks of friends and relations.
for ten years or more. Thus, it may be safely concluded They also received help and support from them when
that migration for business is essentially a long-run they set up their own business.
phenomenon.
It is seen that many among the group have small
From the results of the gravity models, it may be businesses and they are quite content with their earnings.
inferred that the size of the population of the source The multiplier effect generated from their consumption
state is an important determinant of migration flows. and investment activities benefits the Goan economy
This is because as the population increases, there is greatly. Overall, the respondents have a favourable
greater pressure exerted on scarce resources. Hence, impression about working and living conditions in
businesspersons look at investing in regions with Goa. Very few reported instances of discrimination and
less competition for space and resources as the cost abuse. The respondents are here for the long term. They
of setting up a business will be lower here than in the have settled by building a house, buying land, acquiring
case of the home state. In comparing how the size of important documents and intend to settle here. They
the population of the source state influences migration help their families back home by sending remittances.
for business and migration for work, it is seen that In addition, they help to sustain the process of business
though the effects are similar, more workers move out migration by helping others from their hometown to set
compared to businesspersons. In the case of distance, up business in Goa.
it deters the mobility of businesspersons more than
workers do. Again, when a comparison is made of the It may be concluded that the number of business
effect of these variables on male and female migration migrants vis-a-vis other migrants is quite low in
for business, it is observed that when the population the state. By providing suitable incentives and
of the home state increases, it is men who move out support facilities, the government can improve these
in greater numbers than women. On the other hand, numbers. It is important to attract business to Goa
distance is a stronger deterrent for female migration as it will generate jobs within the state. There will
than it is for men. Census data on migration reveal be indirect benefits through the multiplier effect too.
that social reasons for migration like marriage, The migrant business community in Goa is generally
moved after birth and moved with family continue happy with the conditions here, which implies that
to be more important than economic reasons for there is much scope to increase migration for business
migration among women. Literacy and GSDP do not into the state.
seem to influence migration flows. Education is not
an important requirement for conducting business.
That high economic growth in the home states does DECLARATION OF CONFLICTING
not prevent outflows seems to suggest that people INTERESTS
move out not because of lack of economic growth at The authors declared no potential conflicts of interest
home but because of better opportunities or lower with respect to the research, authorship and/or
costs at the host state. Thus, it is seen that the size of publication of this article.
the population of the source state and distance are
important determinants of business migration.
FUNDING
In the case of the primary study, it is observed that the
majority of the businesspersons are male, Hindus and The authors received no financial support for the
belong to the general category. To succeed in business, research, authorship and/or publication of this article.

14 MIGRATION FOR BUSINESS: A CASE STUDY OF GOA

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P. S. Devi is an Assistant Professor in Economics at P. K. Sudarsan is (Retd.) Professor of Economics at Goa

Sridora Caculo College of Commerce and Management Business School, Goa University, Goa, with 35 years
Studies, Mapusa, Goa, with over 20 years of teaching of experience in academics and research. He was the
experience. She completed her PhD in Migration Vice-Dean (Research) and has several publications in
Studies from the Goa Business School, Goa University. national and international journals. Fourteen students
e-mail: [email protected] have successfully completed PhD under his guidance.
He was a member of the Goa University Court and
Academic Council. e-mail: [email protected]

VIKALPA • VOLUME XX • ISSUE X • XX-XX 2024 15