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The effects of foreign direct investment on emigration: The roles of FDI source country, education, and gender

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  • Xu, Xu
  • Sylwester, Kevin

Abstract

How do inflows of FDI into developing countries influence emigration to these same FDI source countries? FDI could raise wages and employment thereby reducing emigration but could also create information links that increase emigration. We examine to what extent FDI leads to emigration. When considering emigration to a particular developed country, we allow the effect of FDI from that country to differ from the effects of FDI from other countries. We find that FDI increases emigration but only to the FDI source country. FDI from other countries lowers emigration. We find little differences across education levels or gender.

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  • Xu, Xu & Sylwester, Kevin, 2016. "The effects of foreign direct investment on emigration: The roles of FDI source country, education, and gender," Economic Modelling, Elsevier, vol. 55(C), pages 401-409.
    • Handle: RePEc:eee:ecmode:v:55:y:2016:i:c:p:401-409
    DOI: 10.1016/j.econmod.2016.03.001
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    Cited by:

    1. Mihi-Ramirez, Antonio & Sobierajc, Janusz & Garcia-Rodriguez, Yolanda, 2019. "Interaction of emigration and immigration with foreign direct investment, international trade and remittances," Economics Discussion Papers 2019-63, Kiel Institute for the World Economy (IfW Kiel).
    2. Wang, Hao & Fidrmuc, Jan & Luo, Qi, 2021. "A spatial analysis of inward FDI and urban–rural wage inequality in China," Economic Systems, Elsevier, vol. 45(3).
    3. Wang, Qingbin & Zou, Yang & Fan, Dan, 2019. "Gender imbalance in China’s marriage migration: Quantitative evidence and policy implications," Economic Modelling, Elsevier, vol. 83(C), pages 406-414.
    4. Chen, Lin & Cheng, Chen, 2023. "Emigration and outward FDI in China: Key role of institutional quality," Finance Research Letters, Elsevier, vol. 51(C).
    5. Florenca Gjorduni, 2023. "Diaspora Impact on Foreign Direct Investment: State Institutions on Diaspora Engagement," European Journal of Marketing and Economics Articles, Revistia Research and Publishing, vol. 6, January -.
    6. Jovanka Pinas & Sun Wei & Tetelesti Oppong-Baah & Elina Kim & Mabel Addai & Isaac Owusu & Edward Gyamfi & Deborah Ofosu & Adjoa Afedua Nsaful & Emmanuel Nketiah & Mavis Adjei & Abigail Afi Asamoah Asi, 2020. "Assessing a Causal Relationship Between Foreign Direct Investment and Human Capital: The Case of the Netherlands," International Business Research, Canadian Center of Science and Education, vol. 13(1), pages 247-258, January.
    7. Sadia Idrees & Nor’Aznin Abu Bakar, 2019. "Foreign Direct Investment and Social Sectors Development: A Review," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 7(1), pages :93-105, March.
    8. Tafadzwa Matiza & Sandra Perks, 2017. "Human Capital Reputation as an Antecedent of Foreign Direct Investment Market Entry in Zimbabwe," Journal of Economics and Behavioral Studies, AMH International, vol. 9(5), pages 185-199.

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    More about this item

    Keywords

    International migration; Foreign direct investment; Education; Gender;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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