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Return International Migration and Geographical Inequality: The Case of Egypt

  • Barry McCormick
  • Jackline Wahba
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    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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    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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    1. 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.
    2. Dustmann, Christian & Kirchkamp, Oliver, 2000. "The Optimal Migration Duration and Activity Choice after Re-migration," Sonderforschungsbereich 504 Publications 00-39, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    3. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
    4. 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.
    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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