THE RELATION BETWEEN MIGRATION AND FDI IN THE OECD FROM A COMPLEX NETWORK PERSPECTIVE

Antonios Garas (), Athanasios Lapatinas and Konstantinos Poulios ()
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Antonios Garas: Chair of Systems Design ETH Zurich, Weinbergstrasse 56/58, CH-8092 Zürich, Switzerland
Konstantinos Poulios: Department of Economics, University of Ioannina, P. O. Box 1186, 45110, Ioannina, Greece

Advances in Complex Systems (ACS), 2016, vol. 19, issue 06n07, 1-20

Abstract: We explore the relationship between human migration and OECD’s foreign direct investment (FDI) using a gravity equation enriched with variables that account for complex-network effects. Based on a panel data analysis, we find a strong positive correlation between the migration network and the FDI network, which can be mostly explained by countries’ economic/demographic sizes and geographical distance. We highlight the existence of a stronger positive FDI relationship in pairs of countries that are more central in the migration network. Both intensive and extensive forms of centrality are FDI enhancing. Illuminating this result, we show that bilateral FDI between any two countries is further affected positively by the complex web of ‘third party’ corridors/migration stocks of the international migration network (IMN). Our findings are consistent whether we consider bilateral FDI and bilateral migration figures, or we focus on the outward FDI and the respective inward migration of the OECD countries.

Keywords: FDI; migration; graph theory; networks; complex systems (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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DOI: 10.1142/S0219525916500090

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