Remittances, Ethnic Diversity, and Entrepreneurship in Developing Countries

Isil Yavuz and Berrak Bahadir ()
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Isil Yavuz: Bryant University
Berrak Bahadir: Department of Economics, Florida International University

No 2110, Working Papers from Florida International University, Department of Economics

Abstract: This paper examines the moderating influence of home country ethnic diversity in the relationship between migrant remittances and new business creation in developing countries. By employing the theories of transaction cost, social network, social identity, and trust, we argue that ethnic diversity is negatively associated with new business creation; nevertheless, it strengthens the positive association between migrant remittances and new business creation in developing countries. We test our hypotheses on 64 developing countries over an 11-year period (2006-2016). This paper contributes to entrepreneurship literature by emphasizing the importance of home country ethnic diversity in channeling migrants' remittances to new business creation in developing countries.

Keywords: Migrant Remittances; New Business Creation; Ethnic Diversity; Developing Countries (search for similar items in EconPapers)
JEL-codes: F24 J15 L26 M13 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2021-03
New Economics Papers: this item is included in nep-ent, nep-fdg, nep-lab, nep-mig, nep-pay and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://economics.fiu.edu/research/pdfs/2021_working_papers/2110.pdf First version, 2021 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:2110

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