Institutional Voids, Capital Markets and Temporary Migration : Evidence from Bangladesh

Limited access to credit due to poorly functioning institutions is a key constraint to business creation. This paper examines the role played by temporary migration in addressing the institutional void of limited access to loans by aspiring entrepr...

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Main Authors:	Bossavie, Laurent, Görlach, Joseph-Simon, Ozden, Caglar, Wang, He
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2022
Subjects:	MIGRATION ACCESS TO FINANCE TEMPORARY MIGRATION ENTREPRENEURSHIP SAVINGS
Online Access:	http://documents.worldbank.org/curated/en/493361644263971771/Institutional-Voids-Capital-Markets-and-Temporary-Migration-Evidence-from-Bangladesh http://hdl.handle.net/10986/36969

id	okr-10986-36969
recordtype	oai_dc
spelling	okr-10986-369692022-02-11T05:10:35Z Institutional Voids, Capital Markets and Temporary Migration : Evidence from Bangladesh Bossavie, Laurent Görlach, Joseph-Simon Ozden, Caglar Wang, He MIGRATION ACCESS TO FINANCE TEMPORARY MIGRATION ENTREPRENEURSHIP SAVINGS Limited access to credit due to poorly functioning institutions is a key constraint to business creation. This paper examines the role played by temporary migration in addressing the institutional void of limited access to loans by aspiring entrepreneurs. Using rich data from one of the major migrant-sending countries globally, Bangladesh, it provides evidence on how migration is employed as a common intermediate step to accumulate the capital required for entrepreneurship. The paper offers, for the first time, a detailed account of the financial costs and returns to temporary migration as a risky investment. It shows that international migration shares many common features with classical entrepreneurial investments: it requires the payment of a considerable upfront cost, generates high returns, and is risky. The paper shows that temporary migrants usually get high returns from their migration episode and are often successful in starting entrepreneurial activities back home, thanks to faster accumulation of savings overseas. Given the similarities shared by Bangladesh and other major migrant-sending countries globally, the key findings of the paper are relevant beyond the Bangladeshi context studied by this paper. 2022-02-10T15:27:22Z 2022-02-10T15:27:22Z 2022-02 Working Paper http://documents.worldbank.org/curated/en/493361644263971771/Institutional-Voids-Capital-Markets-and-Temporary-Migration-Evidence-from-Bangladesh http://hdl.handle.net/10986/36969 English Policy Research Working Paper;No. 9930 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	MIGRATION ACCESS TO FINANCE TEMPORARY MIGRATION ENTREPRENEURSHIP SAVINGS
spellingShingle	MIGRATION ACCESS TO FINANCE TEMPORARY MIGRATION ENTREPRENEURSHIP SAVINGS Bossavie, Laurent Görlach, Joseph-Simon Ozden, Caglar Wang, He Institutional Voids, Capital Markets and Temporary Migration : Evidence from Bangladesh
geographic_facet	South Asia Bangladesh
relation	Policy Research Working Paper;No. 9930
description	Limited access to credit due to poorly functioning institutions is a key constraint to business creation. This paper examines the role played by temporary migration in addressing the institutional void of limited access to loans by aspiring entrepreneurs. Using rich data from one of the major migrant-sending countries globally, Bangladesh, it provides evidence on how migration is employed as a common intermediate step to accumulate the capital required for entrepreneurship. The paper offers, for the first time, a detailed account of the financial costs and returns to temporary migration as a risky investment. It shows that international migration shares many common features with classical entrepreneurial investments: it requires the payment of a considerable upfront cost, generates high returns, and is risky. The paper shows that temporary migrants usually get high returns from their migration episode and are often successful in starting entrepreneurial activities back home, thanks to faster accumulation of savings overseas. Given the similarities shared by Bangladesh and other major migrant-sending countries globally, the key findings of the paper are relevant beyond the Bangladeshi context studied by this paper.
format	Working Paper
author	Bossavie, Laurent Görlach, Joseph-Simon Ozden, Caglar Wang, He
author_facet	Bossavie, Laurent Görlach, Joseph-Simon Ozden, Caglar Wang, He
author_sort	Bossavie, Laurent
title	Institutional Voids, Capital Markets and Temporary Migration : Evidence from Bangladesh
title_short	Institutional Voids, Capital Markets and Temporary Migration : Evidence from Bangladesh
title_full	Institutional Voids, Capital Markets and Temporary Migration : Evidence from Bangladesh
title_fullStr	Institutional Voids, Capital Markets and Temporary Migration : Evidence from Bangladesh
title_full_unstemmed	Institutional Voids, Capital Markets and Temporary Migration : Evidence from Bangladesh
title_sort	institutional voids, capital markets and temporary migration : evidence from bangladesh
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/en/493361644263971771/Institutional-Voids-Capital-Markets-and-Temporary-Migration-Evidence-from-Bangladesh http://hdl.handle.net/10986/36969
_version_	1764486299975155712

Institutional Voids, Capital Markets and Temporary Migration : Evidence from Bangladesh

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