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Skilled Migration and Business Networks

Frédéric Docquier () and Elisabetta Lodigiani

No 234, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: The role of migrants’ networks in promoting cross border investments has been stressed in the literature, possibly making migration and FDI complements rather than substitutes in the long run. In this paper, we estimate the magnitude of such business network externalities in dynamic empirical models of FDI-funded capital accumulation. We use original data on capital and migration stocks rather than flows. Regarding migrants, we distinguish the total and the skilled diasporas abroad. In both cross-sectional and panel frameworks, we find evidence of strong network externalities, mainly associated to the skilled diaspora. These network externalities are stronger for countries exhibiting intermediate corruption index.

Keywords: FDI; Migration; Brain drain; Network; Diaspora (search for similar items in EconPapers)
JEL-codes: F2 O15 Z13 (search for similar items in EconPapers)
Date: 2007-05-02
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http://www.dagliano.unimi.it/media/WP2007_234.pdf (application/pdf)

Related works:
Journal Article: Skilled Migration and Business Networks (2010) Downloads
Working Paper: Skilled migration and business networks (2008) Downloads
Working Paper: Skilled Migration and Business Networks (2006) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:234

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