Heterogeneous immigrants, exports and foreign direct investment: The role of language skills
Matthias LÃ¼cke and
Authors registered in the RePEc Author Service: Tobias Stöhr
The World Economy, 2018, vol. 41, issue 6, 1529-1548
We investigate the interplay of language skills and immigrant stocks in determining bilateral FDI outstocks of OECD reporting countries. Applying a Poisson panel estimator to 2004â€“11 data, we find robust evidence for a positive effect of bilateral immigrants on bilateral FDIâ€ provided that residents of the two countries have few language skills in common. We find a similar effect for immigrants from third countries that speak the language(s) of the FDI host country, making them potential substitutes for bilateral migrants. Our findings suggest that immigrants facilitate outgoing FDI through their language skills, rather than through other characteristics like cultural familiarity.
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Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:41:y:2018:i:6:p:1529-1548
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