EconPapers    
Economics at your fingertips  
 

Migrant networks and foreign direct investment

Beata Javorcik, Çaglar Özden, Mariana Spatareanu and Ileana Neagu Constantinescu

Journal of Development Economics, 2011, vol. 94, issue 2, 231-241

Abstract: Although there exists a sizeable literature documenting the importance of ethnic networks for international trade, little attention has been devoted to studying the effects of migrants on foreign direct investment (FDI). The presence of migrants can stimulate FDI by promoting information flows across international borders and by serving as a contract enforcement mechanism. This paper investigates the link between the presence of migrants in the US and US FDI in the migrants' countries of origin, taking into account the potential endogeneity concerns. The results suggest that US FDI abroad is positively correlated with the presence of migrants from the host country. The data further indicate that the relationship between FDI and migration is stronger for migrants with tertiary education.

Keywords: Migration; Foreign; direct; investment; Brain; drain (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (248)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304-3878(10)00022-2
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Migrant networks and foreign direct investment (2006) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:94:y:2011:i:2:p:231-241

Access Statistics for this article

Journal of Development Economics is currently edited by M. R. Rosenzweig

More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-31
Handle: RePEc:eee:deveco:v:94:y:2011:i:2:p:231-241