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Return Migration, Self-Selection and Entrepreneurship in Mozambique

Author

Listed:
  • Catia Batista

    (Nova School of Business and Economics - Universidade Nova de Lisboa)

  • Tara McIndoe- Calder

    (Central Bank of Ireland)

  • Pedro C. Vicente

    (Nova School of Business and Economics - Universidade Nova de Lisboa)

Abstract

Does return migration affect entrepreneurship? This question has important implications for the debate on the economic development effects of migration for origin countries. The existing literature has, however, not addressed how the estimation of the impact of return migration on entrepreneurship is affected by double unobservable migrant self-selection, both at the initial outward migration and at the final inward return migration stages. This paper uses a representative household survey conducted in Mozambique in order to address this research question. We exploit variation provided by displacement caused by civil war in Mozambique, as well as social unrest and other shocks in migrant destination countries. The results lend support to negative unobservable self-selection at both and each of the initial and return stages of migration, which results in an under-estimation of the effects of return migration on entrepreneurial outcomes when using a 'naive' estimator not controlling for self-selection. Indeed,'naive' estimates point to a 13 pp increase in the probability of owning a business when there is a return migrant in the household relative to non-migrants only, whereas excluding the double effect of unobservable self-selection, this effect becomes significantly larger - between 24 pp and 29 pp, depending on the method of estimation and source of variation used.

Suggested Citation

  • Catia Batista & Tara McIndoe- Calder & Pedro C. Vicente, 2014. "Return Migration, Self-Selection and Entrepreneurship in Mozambique," CReAM Discussion Paper Series 1417, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:1417
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    Cited by:

    1. Marion Mercier & Anda David & Ramón Mahia & Rafael de Arce, 2016. "Reintegration upon return: insights from Ecuadorian returnees from Spain," Post-Print hal-01726275, HAL.
    2. Catia Batista & Francesco Cestari, 2016. "Migrant intentions to return: The role of migrant social networks," FEUNL Working Paper Series novaf:wp1602, Universidade Nova de Lisboa, Faculdade de Economia.
    3. Wim Naudé & Melissa Siegel & Katrin Marchand, 2017. "Migration, entrepreneurship and development: critical questions," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-16, December.
    4. Shao, Shuai & Li, Baoli & Fan, Meiting & Yang, Lili, 2021. "How does labor transfer affect environmental pollution in rural China? Evidence from a survey," Energy Economics, Elsevier, vol. 102(C).
    5. Catia Batista & Pedro C. Vicente, 2011. "Do Migrants Improve Governance at Home? Evidence from a Voting Experiment," The World Bank Economic Review, World Bank Group, vol. 25(1), pages 77-104, May.
    6. Lea-Maria Löbel & Hannes Kröger & Ana Nanette Tibubos, 2021. "Social Isolation and Loneliness in the Context of Migration: A Cross-Sectional Study of Refugees, Migrants, and the Native Population in Germany," SOEPpapers on Multidisciplinary Panel Data Research 1124, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Sameeksha Desai & Wim Naudé & Nora Stel, 2021. "Refugee entrepreneurship: context and directions for future research," Small Business Economics, Springer, vol. 56(3), pages 933-945, February.
    8. Naudé, Wim & Siegel, Melissa & Marchand, Katrin, 2015. "Migration, Entrepreneurship and Development: A Critical Review," IZA Discussion Papers 9284, Institute of Labor Economics (IZA).
    9. Chauvet, Lisa & Mercier, Marion, 2014. "Do return migrants transfer political norms to their origin country? Evidence from Mali," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 630-651.
    10. Croitoru Alin, 2019. "No Entrepreneurship without Opportunity: The Intersection of Return Migration Research and Entrepreneurship Literature," Social Change Review, Sciendo, vol. 17(1), pages 33-60, December.
    11. Catia Batista & Ana Isabel Costa, 2016. "Assessing the role of social networks on migrant labor market outcomes: Evidence from a representative immigrant survey," NOVAFRICA Working Paper Series wp1601, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    12. Anghel, Remus Gabriel & Botezat, Alina & Cosciug, Anatolie & Manafi, Ioana & Roman, Monica, 2016. "International migration, return migration, and their effects. A comprehensive review on the Romanian case," MPRA Paper 75528, University Library of Munich, Germany, revised Dec 2016.
    13. Catia Batista & Julia Seither & Pedro C. Vicente, 2017. "Migration, political institutions, and social networks," NOVAFRICA Working Paper Series wp1701, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    14. Tijan L. Bah, 2018. "Occupation-skill mismatch and selection of immigrants: Evidence from the Portuguese labor market," NOVAFRICA Working Paper Series wp1804, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    15. Mahe, Clotilde, 2017. "Occupational choice of return migrants: Is there a 'Jack-of-all-trades' effect?," MERIT Working Papers 2017-039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Catia Batista & Julia Seither & Pedro C. Vicente, 2017. "Migration, political institutions, and social networks," FEUNL Working Paper Series novaf:wp1701, Universidade Nova de Lisboa, Faculdade de Economia.
    17. Alin Croitoru, 2020. "Great Expectations: A Regional Study of Entrepreneurship Among Romanian Return Migrants," SAGE Open, , vol. 10(2), pages 21582440209, May.
    18. Catia Batista & Francesco Cestari, 2016. "Migrant intentions to return: The role of migrant social networks," NOVAFRICA Working Paper Series wp1602, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    19. Aurelian-Petruş PLOPEANU & Daniel HOMOCIANU, 2020. "Why would Romanian migrants from Western Europe return to their country of origin? Abstract: After conducting a survey among Romanian individuals left abroad, we analyze the particular influences rela," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 211-235, June.
    20. Batista, Catia & Seither, Julia & Vicente, Pedro C., 2019. "Do migrant social networks shape political attitudes and behavior at home?," World Development, Elsevier, vol. 117(C), pages 328-343.
    21. Brück, Tilman & Mahe, Clotilde & Naudé, Wim, 2018. "Return Migration and Self-Employment: Evidence from Kyrgyzstan," IZA Discussion Papers 11332, Institute of Labor Economics (IZA).
    22. Bensassi, Sami & Jabbour, Liza, 2017. "Return Migration and Entrepreneurial Success: An Empirical Analysis for Egypt," GLO Discussion Paper Series 98, Global Labor Organization (GLO).
    23. Mahé, Clothilde, 2016. "Skills and entrepreneurship: Are return migrants 'Jacks-of-all-trades'?," MERIT Working Papers 2016-071, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    24. Célia Taborda Silva, 2019. "Civic Participation and Demonstrations in Portugal (2011–2012)," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 4, September.
    25. World Bank, 2020. "Towards Safer and More Productive Migration for South Asia," World Bank Publications - Reports 33559, The World Bank Group.

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    More about this item

    Keywords

    international migration; return migration; entrepreneurship; selfselection; business ownership; migration effects in origin countries; household survey; Mozambique; sub-Saharan Africa.;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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