This paper explores the links between the patterns of migration (high vs. low-skill), trade policy, and foreign direct investment (FDI) from the standpoint of sending countries. A skeleton general equilibrium model with a non-traded good and sector-specific labour is used to explore the effects of the skill-composition of exports on FDI. The model suggests that if exports are low-skill intensive, emigration of high- skill labour leads to positive FDI, suggesting that migration and FDI are complements. Cross-sectional analysis using FDI and emigration data for 103 migration-sending countries over the period 1990-2000 finds some support for this conjecture.
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Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number
261.
Find related papers by JEL classification: F22 - International Economics - - International Factor Movements and International Business - - - International Migration F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Wacziarg, Romain & Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio, 2002.
"Fractionalization,"
Research Papers
1744, Stanford University, Graduate School of Business.
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Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2003.
"Fractionalization,"
NBER Working Papers
9411, National Bureau of Economic Research, Inc.
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