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Diaspora engagement institutions and venture investment activity in developing countries

Author

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  • Michael E. Cummings

    (University of Arkansas)

  • Alan Gamlen

    (Monash University)

Abstract

In response to recent trends in migration and remittances, many home-country governments have created new agencies that we call diaspora engagement institutions (DEI) intended to address migrant issues. In developing countries, DEI policies often direct migrant money and attention to funding and founding new businesses back home. In this paper, we ask whether and when those DEIs are effective. Grounding our explanation in social exchange and social identity theories, we propose that DEIs are more effective when they promote a stronger sense of home-country belonging and reciprocal giving among migrants. Using evidence from panel data analysis of 35 countries observed from 2001 to 2010, we find partial support for our predictions.

Suggested Citation

  • Michael E. Cummings & Alan Gamlen, 2019. "Diaspora engagement institutions and venture investment activity in developing countries," Journal of International Business Policy, Palgrave Macmillan, vol. 2(4), pages 289-313, December.
    • Handle: RePEc:pal:joibpo:v:2:y:2019:i:4:d:10.1057_s42214-019-00035-8
    DOI: 10.1057/s42214-019-00035-8
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    1. Hong, Sanghyun & Robert Reed, W. & Tian, Bifei & Wu, Tingting & Chen, Gen, 2021. "Does FDI promote entrepreneurial activities? A meta-analysis," World Development, Elsevier, vol. 142(C).
    2. Helena Barnard & David Deeds & Ram Mudambi & Paul M. Vaaler, 2019. "Migrants, migration policies, and international business research: Current trends and new directions," Journal of International Business Policy, Palgrave Macmillan, vol. 2(4), pages 275-288, December.
    3. Elena Poliakova & Liesl Riddle & Michael E. Cummings, 2020. "Diaspora investment promotion via public–private partnerships: Case-study insights and IB research implications from the Succeed in Ireland initiative," Journal of International Business Policy, Palgrave Macmillan, vol. 3(1), pages 23-37, March.

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