FDI, the Brain Drain and Trade: Channels and Evidence

Artjoms Ivlevs () and Jaime de Melo

Chapter 21 in Developing Countries in the World Economy, 2015, pp 533-551 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This paper explores the links between the patterns of migration (high vs. low-skill), trade policy, and foreign direct investment (FOI) 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 FOI. The model suggests that if exports are low-skill intensive, emigration of high-skill labour leads to positive FOI, suggesting that migration and FOI 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

Keywords: Trade Barriers and Market Structure; Quantitative Restrictions; Political Economy and Migration; Trade and the Environment (search for similar items in EconPapers)
Date: 2015
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Related works:
Journal Article: FDI, the Brain Drain and Trade: Channels and Evidence (2010)
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 (2008)
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