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Return International Migration and Geographical Inequality: The Case of Egypt

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  • Barry McCormick
  • Jackline Wahba
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    Abstract

    This paper explores entrepreneurship amongst return migrants, how their business locations and characteristics differ from other businesses, and the implications for rural--urban inequality. First, we examine, amongst returnees, the determinants of investment in a project/enterprise. Secondly, we study the impact of return migration on the characteristics and nature of non-farm small enterprises using a sample of return migrants and non-migrant owners of enterprises. Our data indicate that although the share of return migrants originating in urban areas is almost equal to those from rural areas, and that migrants tend to return to their origin region, urban areas benefit more than rural areas from international savings. The empirical evidence suggests that overseas savings, and the duration of stay overseas, have positive separate effects on the probability of investing in a project/enterprise amongst returnees. Furthermore, returnees of urban origin are more likely than rural ones to invest in a non-farm enterprise. The findings also indicate that there is a regional bias in the location of firms and jobs created by returnees compared with non-migrants, in favour of the capital city. Thus, overall, the results support a positive impact of return migration on enterprise investment in urban areas driven by the preference of returnees to invest in urban areas. Copyright 2003, Oxford University Press.

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    Bibliographic Info

    Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

    Volume (Year): 12 (2003)
    Issue (Month): 4 (December)
    Pages: 500-532

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    Handle: RePEc:oup:jafrec:v:12:y:2003:i:4:p:500-532

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    References

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    1. Galor, Oded & Stark, Oded, 1991. "The probability of return migration, migrants' work effort, and migrants' performance," Journal of Development Economics, Elsevier, vol. 35(2), pages 399-405, April.
    2. Dustmann, Christian & Kirchkamp, Oliver, 2001. "The Optimal Migration Duration and Activity Choice after Re-migration," IZA Discussion Papers 266, Institute for the Study of Labor (IZA).
    3. Edgard R. Rodriguez & Susan Horton, 1995. "International Return Migration and Remittances in the Philippines," Working Papers horton-95-01, University of Toronto, Department of Economics.
    4. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
    5. Djajic, Slobodan, 1986. "International migration, remittances and welfare in a dependent economy," Journal of Development Economics, Elsevier, vol. 21(2), pages 229-234, May.
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    Cited by:
    1. de Haas, Hein, 2009. "Mobility and Human Development," MPRA Paper 19176, University Library of Munich, Germany.
    2. Marilena Giannetti & Daniela Federici & Michele Raitano, 2009. "Does Migration Help Reducing Inequality and Social Exclusion?," Working Papers 2009-01, Universita' di Cassino, Dipartimento di Scienze Economiche.
    3. Cristian ÎNCALŢĂRĂU & Liviu-George MAHA, 2012. "The impact of remittances on consumption and investment in Romania," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 61-86, December.
    4. Marcus Böhme, 2013. "Does Migration Raise Agricultural Investment? An Empirical Analysis for Rural Mexico," Kiel Working Papers 1840, Kiel Institute for the World Economy.
    5. Kanbur, Ravi & Venables, Anthony J., 2005. "SPATIAL INEQUALITY AND DEVELOPMENT Overview of UNU-WIDER Project," Working Papers 127127, Cornell University, Department of Applied Economics and Management.
    6. Richard Black & Adriana Castaldo, 2009. "Return Migration And Entrepreneurship In Ghana And C�Te D'Ivoire: The Role Of Capital Transfers," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(1), pages 44-58, 02.
    7. Francesca Marchetta, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," Working Papers halshs-00693988, HAL.
    8. Andrew Burns & Sanket Mohapatra, 2008. "International Migration and Technological Progress," World Bank Other Operational Studies 11021, The World Bank.
    9. Wouterse, Fleur, 2012. "Migration and Rural Welfare: The Impact of Potential Policy Reforms in Europe," World Development, Elsevier, vol. 40(12), pages 2427-2439.
    10. Cristian ÎNCALTARAU & Sorin-Stefan MAHA & Liviu-George MAHA, 2011. "A Broader Look on Migration: A Two Way Interaction Between Development and Migration in the Country Of Origin," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 8, pages 285-297, December.
    11. Fatma MABROUK, 2013. "À la recherche d’une typologie des migrants de retour : le cas des pays du Maghreb," Cahiers du GREThA 2013-06, Groupe de Recherche en Economie Théorique et Appliquée.

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