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Skilled Migration and Business Networks

Frédéric Docquier () and Lodigini Elisabetta
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Lodigini Elisabetta: UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics

Authors registered in the RePEc Author Service: Elisabetta Lodigiani

No 2006036, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

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 distinquish 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: FD1; Migration; Brain Drain; Network; Diaspo (search for similar items in EconPapers)
JEL-codes: F2 O15 Z13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-net and nep-soc
Date: 2006-10-01
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http://sites.uclouvain.be/econ/DP/IRES/2006-36.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 (2007) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvec:2006036

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