International human capital mobility and FDI: Evidence from G20 countries

Sumiko Takaoka and Ivan Etzo (ietzo@unica.it)

MPRA Paper from University Library of Munich, Germany

Abstract: Human talent will be (or is already) scarce. We view international students as the source of high-skilled labour force, which satisfies the skill and task requirement of firms, particularly those anticipating overseas expansion, and argue whether the international student stock in a country is an indication of positive future prospect for the acquiror country in cross-border mergers. Using the international students’ stocks between pairs of acquiror countries of origin and target firms’ countries for bilateral mergers and acquisitions (M&A) activities, we exploit the within variation of both bilateral M&A activities and bilateral international student stocks between G20 countries. The formation of human capital signals that potential acquirors can access skilled workers and boosts the bilateral M&A activities. Results further indicate that the marginal effect of international students from target country in acquiror country has larger impact than that from acquiror country in target country.

Keywords: FDI; G20; International students mobility (search for similar items in EconPapers)
JEL-codes: F21 F22 G34 (search for similar items in EconPapers)
Date: 2019-10-29
New Economics Papers: this item is included in nep-bec, nep-cse, nep-int and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:96746

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