Migrant networks and foreign direct investment

Beata Javorcik, Caglar Ozden, Mariana Spatareanu and Ileana Neagu Constantinescu

No 4046, Policy Research Working Paper Series from The World Bank

Abstract: While 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.

Keywords: Population Policies; Economic Theory&Research; Voluntary and Involuntary Resettlement; Anthropology; Human Migrations&Resettlements (search for similar items in EconPapers)
Date: 2006-11-01
New Economics Papers: this item is included in nep-dev and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (45)

Downloads: (external link)
http://www-wds.worldbank.org/external/default/WDSC ... ered/PDF/wps4046.pdf (application/pdf)

Related works:
Journal Article: Migrant networks and foreign direct investment (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:4046

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().