Migrant Networks and Foreign Direct Investment

Although there exists a sizeable literature documenting the importance of ethnic networks for international trade, little attention has been devoted to studying the effects of migrants on foreign direct investment (FDI). The presence of migrants can stimulate FDI by promoting information flows acros...

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Bibliographic Details
Main Authors:	Javorcik, Beata S., Ozden, Caglar, Spatareanu, Mariana, Neagu, Cristina
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	International Investment Long-term Capital Movements F210 International Migration F220 Multinational Firms International Business F230
Online Access:	http://hdl.handle.net/10986/5881

id	okr-10986-5881
recordtype	oai_dc
spelling	okr-10986-58812021-04-23T14:02:23Z Migrant Networks and Foreign Direct Investment Javorcik, Beata S. Ozden, Caglar Spatareanu, Mariana Neagu, Cristina International Investment Long-term Capital Movements F210 International Migration F220 Multinational Firms International Business F230 Although there exists a sizeable literature documenting the importance of ethnic networks for international trade, little attention has been devoted to studying the effects of migrants on foreign direct investment (FDI). The presence of migrants can stimulate FDI by promoting information flows across international borders and by serving as a contract enforcement mechanism. This paper investigates the link between the presence of migrants in the US and US FDI in the migrants' countries of origin, taking into account the potential endogeneity concerns. The results suggest that US FDI abroad is positively correlated with the presence of migrants from the host country. The data further indicate that the relationship between FDI and migration is stronger for migrants with tertiary education. 2012-03-30T07:35:00Z 2012-03-30T07:35:00Z 2011 Journal Article Journal of Development Economics 03043878 http://hdl.handle.net/10986/5881 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	International Investment Long-term Capital Movements F210 International Migration F220 Multinational Firms International Business F230
spellingShingle	International Investment Long-term Capital Movements F210 International Migration F220 Multinational Firms International Business F230 Javorcik, Beata S. Ozden, Caglar Spatareanu, Mariana Neagu, Cristina Migrant Networks and Foreign Direct Investment
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Although there exists a sizeable literature documenting the importance of ethnic networks for international trade, little attention has been devoted to studying the effects of migrants on foreign direct investment (FDI). The presence of migrants can stimulate FDI by promoting information flows across international borders and by serving as a contract enforcement mechanism. This paper investigates the link between the presence of migrants in the US and US FDI in the migrants' countries of origin, taking into account the potential endogeneity concerns. The results suggest that US FDI abroad is positively correlated with the presence of migrants from the host country. The data further indicate that the relationship between FDI and migration is stronger for migrants with tertiary education.
format	Journal Article
author	Javorcik, Beata S. Ozden, Caglar Spatareanu, Mariana Neagu, Cristina
author_facet	Javorcik, Beata S. Ozden, Caglar Spatareanu, Mariana Neagu, Cristina
author_sort	Javorcik, Beata S.
title	Migrant Networks and Foreign Direct Investment
title_short	Migrant Networks and Foreign Direct Investment
title_full	Migrant Networks and Foreign Direct Investment
title_fullStr	Migrant Networks and Foreign Direct Investment
title_full_unstemmed	Migrant Networks and Foreign Direct Investment
title_sort	migrant networks and foreign direct investment
publishDate	2012
url	http://hdl.handle.net/10986/5881
_version_	1764396643912777728

Migrant Networks and Foreign Direct Investment

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