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Investing back home

Author

Listed:
  • Talip Kilic
  • Calogero Carletto
  • Benjamin Davis
  • Alberto Zezza

Abstract

This study uses data from the 2005 Albania Living Standards Measurement Study survey to assess the impact of past migration experience of Albanian households on non-farm business ownership through instrumental variables regression techniques. Considering the differences in earning potentials and opportunities for skill acquisition in different destination countries, we differentiate the impact of past household migration experience by main migrant destinations. The study also explores the heterogeneity of impact based on the timing of migration. The empirical results indicate that past household migration experience exerts a positive impact on the probability of owning a non-farm business. While one additional year in Greece increases the probability of household business ownership by roughly 6 percent, a similar experience in Italy or farther destinations raises the probability by over 25 percent. Although past household migration experience for the period of 1990-2000 is positively associated with the likelihood of owning a household enterprise, a similar association does not exist for the period of 2001-2004. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The European Bank for Reconstruction and Development.

Suggested Citation

  • Talip Kilic & Calogero Carletto & Benjamin Davis & Alberto Zezza, 2009. "Investing back home," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(3), pages 587-623, July.
  • Handle: RePEc:bla:etrans:v:17:y:2009:i:3:p:587-623
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    References listed on IDEAS

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    Cited by:

    1. J. William Ambrosini & Karin Mayr & Giovanni Peri & Dragos Radu, 2011. "The Selection of Migrants and Returnees: Evidence from Romania and Implications," NBER Working Papers 16912, National Bureau of Economic Research, Inc.
    2. Jackline Wahba, 2014. "Return migration and economic development," Chapters,in: International Handbook on Migration and Economic Development, chapter 12, pages 327-349 Edward Elgar Publishing.
    3. Kathleen Beegle & Joachim De Weerdt & Stefan Dercon, 2011. "Migration and Economic Mobility in Tanzania: Evidence from a Tracking Survey," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 1010-1033, August.
    4. 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.
    5. Mariapia Mendola & Gero Carletto, 2008. "International migration and gender differentials in the home labor market: evidence from Albania," Working Papers 148, University of Milano-Bicocca, Department of Economics, revised Dec 2008.
    6. Kalaj, Ermira Hoxha, 2010. "Remittances and Human Capital Investment: Evidence from Albania," MPRA Paper 49210, University Library of Munich, Germany.
    7. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications, The World Bank, number 13092.
    8. Barbara Dietz, 2010. "Migration and Remittances in Macedonia : A Review," Working Papers 281, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    9. Azzarri, Carlo & Carletto, Calogero, 2009. "Modeling migration dynamics in Albania : a hazard function approach," Policy Research Working Paper Series 4945, The World Bank.
    10. Kalaj, Ermira Hoxha, 2010. "Are Remittances Spent in a Healthy Way? Evidence from Albania," MPRA Paper 49172, University Library of Munich, Germany.
    11. Ambrosini, J. William & Mayr, Karin & Peri, Giovanni & Radu, Dragos, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and Long-Run Implications," IZA Discussion Papers 6664, Institute for the Study of Labor (IZA).
    12. Cris Beauchemin & Lama Kabbanji & Bruno Schoumaker, 2009. "Entre parcours de vie des migrants et attentes politiques, quel co-développement en Afrique subsaharienne," Working Papers 166, Institut National d'Études Démographiques (INED).

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