This paper utilizes the analytical framework of the Investment-Migration-Development Path (IMDP) to examine the development experiences of Indonesia and Thailand, as well as their relationship with foreign direct investment (FDI) and international labour migration (ILM). Special attention was given to changes in relevant policies and programs. The empirical evidence of the two individual countries and their pooled data generally corroborates the prediction of the IMDP, despite differences in attitudes and policies towards FDI and ILM. This finding in turn supports the basic argument of the IMDP that both FDI and ILM reflect the working of market mechanism.