Entrepreneurial Migration in an Integrated World

Spiros Bougheas and Rodney Falvey

Scandinavian Journal of Economics, 2018, vol. 120, issue 4, 1171-1201

Abstract: A growing number of developed countries offer entrepreneurial visas as a means of attracting entrepreneurial talent and capital. In this paper, we use a simple two‐sector model of international trade with heterogeneous agents and financial frictions to show that entrepreneurial migration can contribute to the international efficiency of production, even when capital also flows internationally through borrowing and lending and foreign direct investment. In our model, all cross‐border transactions are motivated by cross‐country variations in the quality of financial institutions.

Date: 2018
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https://doi.org/10.1111/sjoe.12249

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Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:120:y:2018:i:4:p:1171-1201

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