Migrant Networks and Foreign Direct Investment

Javorcik, Beata S.Özden, ÇağlarSpatareanu, MarianaNeagu, Cristina2012-06-262012-06-262006-11https://hdl.handle.net/10986/9023While there exists sizeable literature documenting the importance of ethnic networks for international trade, little attention has been devoted to studying the effects of networks on foreign direct investment (FDI). The existence of ethnic networks may positively affect FDI by promoting information flows across international borders and by serving as a contract enforcement mechanism. This paper investigates the link between the presence of migrants in the United States and U.S. FDI in the migrants' countries of origin, taking into account the potential endogeneity concerns. The results suggest that U.S. FDI abroad is positively correlated with the presence of migrants from the host country. The data further indicate that the relationship between FDI and migration is driven by the presence of migrants with a college education.en-USCC BY 3.0 IGOARMED CONFLICTASSETSBILATERAL TRADEBRAIN-DRAINCITIESCITIZENSCONSUMER PREFERENCESCONSUMERSCOUNTRIES OF ORIGINCOUNTRY OF ORIGINDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDIASPORAECONOMIC GROWTHECONOMIC STATUSECONOMICS RESEARCHEDUCATED MIGRANTSELASTICITYEMIGRATIONEMPLOYMENT OPPORTUNITIESETHICSEXPORTSFOREIGN DIRECT INVESTMENTGDPGDP PER CAPITAHOST COUNTRIESHOST COUNTRYIMMIGRANTIMMIGRATIONIMPLICIT CONTRACTINFLATIONINTERNATIONAL BORDERSINTERNATIONAL MIGRATIONINTERNATIONAL MOBILITYINTERNATIONAL TRADELABOR MARKETLAND OWNERSHIPMACROECONOMIC STABILITYMARRIED WOMENMIGRANTMIGRANTSMIGRATIONMIGRATION FLOWSNATIONAL BOUNDARIESNUMBER OF MIGRANTSPEACEPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOPULATION CENTERPOPULATION DENSITYPOPULATION INCREASESPOPULATION SIZEPROGRESSPROVISION OF INFORMATIONPURCHASING POWERPUSH FACTORREGULATORY REGIMESREMITTANCESREMITTANCES FROM MIGRANTSRESPECTRETURN MIGRATIONRETURNEERULE OF LAWRURAL POPULATIONSSECONDARY EDUCATIONSKILLED MIGRANTSSKILLED WORKERSSOCIAL NETWORKSTERTIARY EDUCATIONTRADE BARRIERSTRANSPORTATIONUNMARRIED WOMENWAGESMigrant Networks and Foreign Direct InvestmentWorld Bank10.1596/1813-9450-4046