Do immigrants attract FDI? District-level evidence from Germany

Chen Li

VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy from Verein für Socialpolitik / German Economic Association

Abstract: Using novel German district-level data from 1999-2011, this paper analyses whether the presence of immigrants in a particular location helps to attract inward FDI from the immigrants' country of origin. Results show that a one standard-deviation increase in the immigrant share is associated with a 3.3% rise in firm entry. This effect is stronger for an investor's first entry into Germany, and there is indication that firms from developing countries depend more on immigrants. A quasi-natural experiment exploiting the migration of ethnic Germans from the former Soviet Union in the 1990s (`Sp taussiedler') confirms the results.

JEL-codes: F14 F22 F23 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-bec, nep-geo, nep-int, nep-mig and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc15:113130

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