Skilled emigration, business networks and foreign direct investment [presented at CESifo Area Conference on Global Economy, December 2004]
Literaturverz. S. 14 - 15
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| Format: | UnknownFormat |
| Sprache: | eng |
| Veröffentlicht: |
Munich
Univ., Center for Economic Studies
2005
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| Schriftenreihe: | CESifo working paper series Trade policy
1455 |
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Tag hinzufügen | Zusammenfassung: | Literaturverz. S. 14 - 15 In a global context foreign direct investment (FDI) and migration substitute one another in the matching process between workers and firms. However, as labor flows can lead to the formation of business networks, migration can actually facilitate FDI in the long-run. We first present a stylized model for a small open economy illustrating these offsetting effects. We then use U.S. data on bilateral labor inflows and capital outflows to measure the extent of contemporaneous substitutability and dynamic complementarity between migration and FDI. We find that brain drain and FDI inflows are negatively correlated contemporaneously but that skilled migration is associated with future increases in FDI inflows. We also find suggestive evidence of substitutability between current migration and FDI for migrants with secondary education, and of complementarity between past migration and FDI for unskilled migrants. |
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| Beschreibung: | 15, [5] S graph. Darst |