Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh

Laurent Bossavie, Joseph-Simon Goerlach (), Caglar Ozden and He Wang
Additional contact information
Joseph-Simon Goerlach: Bocconi University
Caglar Ozden: World Bank
Authors registered in the RePEc Author Service: Joseph-Simon Görlach

No 2318, RFBerlin Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin)

Abstract: This paper examines international temporary migration as an intermediary step among aspiring entrepreneurs to accumulate the needed capital when they face credit constraints at home. The analysis is based on a representative dataset of lifetime employment histories of return migrants from Bangladesh. After establishing the credit constraints that potential entrepreneurs face, the paper shows that non-agricultural self-employment rates are significantly higher among returning migrants over half versus around 20% of non-migrants. Most migrants transition into self-employment by using their savings from abroad as the main source of financing. The paper then offers, for the first time, a detailed account of the financial costs and benefits of international migration. Our findings suggest that temporary migration can contribute to the structural transformation of lower-income countries by enabling credit-constrained workers to enter into non-agricultural entrepreneurship.

Keywords: Temporary migration; credit constraints; risky investment; entrepreneurship (search for similar items in EconPapers)
Date: 2023-12
New Economics Papers: this item is included in nep-ent, nep-fdg and nep-int
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https://www.cream-migration.org/publ_uploads/CDP_18_23.pdf (application/pdf)

Related works:
Journal Article: Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh (2024)
Working Paper: Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh (2023)
Working Paper: Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:2318

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