IDEAS home Printed from https://ideas.repec.org/p/gii/giihei/heidwp06-2009.html
   My bibliography  Save this paper

Investment Opportunities in the Source Country and Temporary Migration

Author

Abstract

This paper examines how attractive investment opportunities available to temporary migrants in their country of origin a¤ect their saving behavior and the optimal duration of stay abroad. The model predicts an inverse U-shaped relationship between migration duration and the expected rate of return on repatriated savings. A higher rate provides an incentive to go back earlier and consume less abroad, while it can also trigger emigration aimed at generating the savings required for investment after return. At a more general level, the paper illustrates how the behavior of temporary migrants re?ects the interaction between their preferences and the opportunities available in the labor and capital markets of both countries.

Suggested Citation

  • Slobodan Djajic, 2008. "Investment Opportunities in the Source Country and Temporary Migration," IHEID Working Papers 06-2009, Economics Section, The Graduate Institute of International Studies, revised May 2009.
    • Handle: RePEc:gii:giihei:heidwp06-2009
    as

    Download full text from publisher

    File URL: http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIDWP06-2009.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Galor, Oded & Stark, Oded, 1990. "Migrants' Savings, the Probability of Return Migration and Migrants' Performance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 463-467, May.
    2. de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    2. Yu Zhu & Zhongmin Wu & Meiyan Wang & Yang Du & Fang Cai, 2011. "Do Migrants Really Save More? Understanding the Impact of Remittances on Savings in Rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 48(5), pages 654-672, June.
    3. Emmanuel Thibault, 2001. "Labor immigration and long-run welfare in a growth model with heterogenous agents and endogenous labor supply," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(2), pages 391-407.
    4. Jellal, Mohamed, 2014. "Diaspora et comportement économique en incertitude [Diaspora and economic behavior under uncertainty]," MPRA Paper 57236, University Library of Munich, Germany.
    5. Li, Linfei & Khan, Sufyan Ullah & Guo, Chenhao & Huang, Yanfen & Xia, Xianli, 2022. "Non-agricultural labor transfer, factor allocation and farmland yield: Evidence from the part-time peasants in Loess Plateau region of Northwest China," Land Use Policy, Elsevier, vol. 120(C).
    6. Thomas Bauer & Mathias Sinning, 2011. "The savings behavior of temporary and permanent migrants in Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(2), pages 421-449, April.
    7. Piras, Simone & Vittuari, Matteo & Möllers, Judith & Herzfeld, Thomas, 2018. "Remittance inflow and smallholder farming practices. The case of Moldova," Land Use Policy, Elsevier, vol. 70(C), pages 654-665.
    8. Xinhui Wu & Luan Chen & Li Ma & Liru Cai & Xun Li, 2023. "Return migration, rural household investment decision, and poverty alleviation: Evidence from rural Guangdong, China," Growth and Change, Wiley Blackwell, vol. 54(1), pages 304-325, March.
    9. Cristobal, Adolfo, 2006. "Skill-Upgrading and the Savings of Immigrants," MPRA Paper 221, University Library of Munich, Germany.
    10. repec:zbw:rwirep:0109 is not listed on IDEAS
    11. Anqing Shi, 2011. "Rural Out-Migration and Family Life in Cities in Mongolia," World Bank Publications - Reports 27412, The World Bank Group.
    12. Jellal, Mohamed & Bouzahzah, Mohamed, 2012. "Diaspora parité du pouvoir d'achat incertitude et épargne," MPRA Paper 38746, University Library of Munich, Germany.
    13. Coniglio, Nicola & De Arcangelis, Giuseppe & Serlenga, Laura, 2006. "Intentions to Return of Undocumented Migrants: Illegality as a Cause of Skill Waste," IZA Discussion Papers 2356, Institute of Labor Economics (IZA).
    14. Borodak, Daniela & Piracha, Matloob, 2013. "Who Moves and For How Long: Determinants of Different Forms of Migration," IZA Discussion Papers 7388, Institute of Labor Economics (IZA).
    15. Bierkamp, Sina & Nguyen, Trung Thanh & Grote, Ulrike, 2021. "Environmental income and remittances: Evidence from rural central highlands of Vietnam," Ecological Economics, Elsevier, vol. 179(C).
    16. Démurger, Sylvie & Wang, Xiaoqian, 2016. "Remittances and expenditure patterns of the left behinds in rural China," China Economic Review, Elsevier, vol. 37(C), pages 177-190.
    17. Elke Holst & Andrea Schäfer & Mechthild Schrooten, 2010. "Gender, Transnational Networks and Remittances: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 296, DIW Berlin, The German Socio-Economic Panel (SOEP).
    18. Maryann Bylander & Erin Hamilton, 2015. "Loans and Leaving: Migration and the Expansion of Microcredit in Cambodia," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(5), pages 687-708, October.
    19. Moses A. Ofeh & Ali T. Muandzevara, 2017. "Investigating the Effects of Migrant Remittances on the Economic Growth of Cameroon," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(2), pages 58-69, February.
    20. Beaman, Lori & Onder, Harun & Onder, Stefanie, 2022. "When do refugees return home? Evidence from Syrian displacement in Mashreq," Journal of Development Economics, Elsevier, vol. 155(C).
    21. Edmond Akwasi Agyeman & Mercedes Fernández Garcia, 2016. "Connecting Return Intentions and Home Investment: the Case of Ghanaian Migrants in Southern Europe," Journal of International Migration and Integration, Springer, vol. 17(3), pages 745-759, August.

    More about this item

    Keywords

    International migration; Remittances; Return migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gii:giihei:heidwp06-2009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dorina Dobre (email available below). General contact details of provider: https://edirc.repec.org/data/ieheich.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.