FDI, the Brain Drain and Trade: Channels and Evidence

IVLEVS Artjoms and Jaime A.P. de Melo ()

Annales d'Economie et de Statistique, 2010, issue 97-98, pages 103-121

Abstract: This paper explores the links between the patterns of migration (high vs. low-skill), trade policy, and foreign direct investment (FDI) from the standpoint of sending countries. A skeleton general equilibrium model with a non-traded good and sector-specific labour is used to explore the effects of the skill-composition of exports on FDI. The model suggests that if exports are low-skill intensive, emigration of high-skill labour leads to positive FDI, suggesting that migration and FDI are complements. Cross-sectional analysis using FDI and emigration data for 102 migration-sending countries over the period 1990-2000 finds some support for this conjecture

Date: 2010
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Related works:
Working Paper: FDI, the Brain Drain and Trade: Channels and Evidence (2008)
Working Paper: FDI, the Brain Drain and Trade: Channels and Evidence (2008)
Working Paper: FDI, the Brain Drain and Trade: Channels and Evidence
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Persistent link: http://EconPapers.repec.org/RePEc:adr:anecst:y:2010:i:97-98:p:05

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