Migrant Networks and Foreign Direct Investment

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...

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Main Authors: Javorcik, Beata S., Özden, Çağlar, Spatareanu, Mariana, Neagu, Cristina
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2006/11/7154722/migrant-networks-foreign-direct-investment
http://hdl.handle.net/10986/9023
id okr-10986-9023
recordtype oai_dc
spelling okr-10986-90232021-04-23T14:02:41Z Migrant Networks and Foreign Direct Investment Javorcik, Beata S. Özden, Çağlar Spatareanu, Mariana Neagu, Cristina ARMED CONFLICT ASSETS BILATERAL TRADE BRAIN-DRAIN CITIES CITIZENS CONSUMER PREFERENCES CONSUMERS COUNTRIES OF ORIGIN COUNTRY OF ORIGIN DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DIASPORA ECONOMIC GROWTH ECONOMIC STATUS ECONOMICS RESEARCH EDUCATED MIGRANTS ELASTICITY EMIGRATION EMPLOYMENT OPPORTUNITIES ETHICS EXPORTS FOREIGN DIRECT INVESTMENT GDP GDP PER CAPITA HOST COUNTRIES HOST COUNTRY IMMIGRANT IMMIGRATION IMPLICIT CONTRACT INFLATION INTERNATIONAL BORDERS INTERNATIONAL MIGRATION INTERNATIONAL MOBILITY INTERNATIONAL TRADE LABOR MARKET LAND OWNERSHIP MACROECONOMIC STABILITY MARRIED WOMEN MIGRANT MIGRANTS MIGRATION MIGRATION FLOWS NATIONAL BOUNDARIES NUMBER OF MIGRANTS PEACE POLICY RESEARCH POLICY RESEARCH WORKING PAPER POPULATION CENTER POPULATION DENSITY POPULATION INCREASES POPULATION SIZE PROGRESS PROVISION OF INFORMATION PURCHASING POWER PUSH FACTOR REGULATORY REGIMES REMITTANCES REMITTANCES FROM MIGRANTS RESPECT RETURN MIGRATION RETURNEE RULE OF LAW RURAL POPULATIONS SECONDARY EDUCATION SKILLED MIGRANTS SKILLED WORKERS SOCIAL NETWORKS TERTIARY EDUCATION TRADE BARRIERS TRANSPORTATION UNMARRIED WOMEN WAGES 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. 2012-06-26T14:43:25Z 2012-06-26T14:43:25Z 2006-11 http://documents.worldbank.org/curated/en/2006/11/7154722/migrant-networks-foreign-direct-investment http://hdl.handle.net/10986/9023 English en_US Policy Research Working Paper; No. 4046 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ARMED CONFLICT
ASSETS
BILATERAL TRADE
BRAIN-DRAIN
CITIES
CITIZENS
CONSUMER PREFERENCES
CONSUMERS
COUNTRIES OF ORIGIN
COUNTRY OF ORIGIN
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DIASPORA
ECONOMIC GROWTH
ECONOMIC STATUS
ECONOMICS RESEARCH
EDUCATED MIGRANTS
ELASTICITY
EMIGRATION
EMPLOYMENT OPPORTUNITIES
ETHICS
EXPORTS
FOREIGN DIRECT INVESTMENT
GDP
GDP PER CAPITA
HOST COUNTRIES
HOST COUNTRY
IMMIGRANT
IMMIGRATION
IMPLICIT CONTRACT
INFLATION
INTERNATIONAL BORDERS
INTERNATIONAL MIGRATION
INTERNATIONAL MOBILITY
INTERNATIONAL TRADE
LABOR MARKET
LAND OWNERSHIP
MACROECONOMIC STABILITY
MARRIED WOMEN
MIGRANT
MIGRANTS
MIGRATION
MIGRATION FLOWS
NATIONAL BOUNDARIES
NUMBER OF MIGRANTS
PEACE
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POPULATION CENTER
POPULATION DENSITY
POPULATION INCREASES
POPULATION SIZE
PROGRESS
PROVISION OF INFORMATION
PURCHASING POWER
PUSH FACTOR
REGULATORY REGIMES
REMITTANCES
REMITTANCES FROM MIGRANTS
RESPECT
RETURN MIGRATION
RETURNEE
RULE OF LAW
RURAL POPULATIONS
SECONDARY EDUCATION
SKILLED MIGRANTS
SKILLED WORKERS
SOCIAL NETWORKS
TERTIARY EDUCATION
TRADE BARRIERS
TRANSPORTATION
UNMARRIED WOMEN
WAGES
spellingShingle ARMED CONFLICT
ASSETS
BILATERAL TRADE
BRAIN-DRAIN
CITIES
CITIZENS
CONSUMER PREFERENCES
CONSUMERS
COUNTRIES OF ORIGIN
COUNTRY OF ORIGIN
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DIASPORA
ECONOMIC GROWTH
ECONOMIC STATUS
ECONOMICS RESEARCH
EDUCATED MIGRANTS
ELASTICITY
EMIGRATION
EMPLOYMENT OPPORTUNITIES
ETHICS
EXPORTS
FOREIGN DIRECT INVESTMENT
GDP
GDP PER CAPITA
HOST COUNTRIES
HOST COUNTRY
IMMIGRANT
IMMIGRATION
IMPLICIT CONTRACT
INFLATION
INTERNATIONAL BORDERS
INTERNATIONAL MIGRATION
INTERNATIONAL MOBILITY
INTERNATIONAL TRADE
LABOR MARKET
LAND OWNERSHIP
MACROECONOMIC STABILITY
MARRIED WOMEN
MIGRANT
MIGRANTS
MIGRATION
MIGRATION FLOWS
NATIONAL BOUNDARIES
NUMBER OF MIGRANTS
PEACE
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POPULATION CENTER
POPULATION DENSITY
POPULATION INCREASES
POPULATION SIZE
PROGRESS
PROVISION OF INFORMATION
PURCHASING POWER
PUSH FACTOR
REGULATORY REGIMES
REMITTANCES
REMITTANCES FROM MIGRANTS
RESPECT
RETURN MIGRATION
RETURNEE
RULE OF LAW
RURAL POPULATIONS
SECONDARY EDUCATION
SKILLED MIGRANTS
SKILLED WORKERS
SOCIAL NETWORKS
TERTIARY EDUCATION
TRADE BARRIERS
TRANSPORTATION
UNMARRIED WOMEN
WAGES
Javorcik, Beata S.
Özden, Çağlar
Spatareanu, Mariana
Neagu, Cristina
Migrant Networks and Foreign Direct Investment
relation Policy Research Working Paper; No. 4046
description 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.
format Publications & Research :: Policy Research Working Paper
author Javorcik, Beata S.
Özden, Çağlar
Spatareanu, Mariana
Neagu, Cristina
author_facet Javorcik, Beata S.
Özden, Çağlar
Spatareanu, Mariana
Neagu, Cristina
author_sort Javorcik, Beata S.
title Migrant Networks and Foreign Direct Investment
title_short Migrant Networks and Foreign Direct Investment
title_full Migrant Networks and Foreign Direct Investment
title_fullStr Migrant Networks and Foreign Direct Investment
title_full_unstemmed Migrant Networks and Foreign Direct Investment
title_sort migrant networks and foreign direct investment
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2006/11/7154722/migrant-networks-foreign-direct-investment
http://hdl.handle.net/10986/9023
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