IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/halshs-00693988.html
   My bibliography  Save this paper

Return Migration and the Survival of Entrepreneurial Activities in Egypt

Author

Listed:
  • Francesca Marchetta

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

The literature shows that temporary international migrants have a high propensity to opt for an entrepreneurial activity upon return, but the prospects of survival of these activities have not been explored. We address this research question using longitudinal Egyptian data. We find that entrepreneurs' migration experience significantly improves the chances of survival of their entrepreneurial activities, adopting econometric techniques that control for return migrants' non-random selection in unobservables. We resort to a bivariate probit model and a two-stage residual inclusion estimator, using the rate of population growth and the real oil price as alternative instruments for migration.

Suggested Citation

  • Francesca Marchetta, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," Working Papers halshs-00693988, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00693988
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00693988
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-00693988/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:bla:rdevec:v:3:y:1999:i:2:p:170-86 is not listed on IDEAS
    2. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    3. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
    4. Wahba, Jackline & Zenou, Yves, 2012. "Out of sight, out of mind: Migration, entrepreneurship and social capital," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 890-903.
    5. Mata, Jose & Portugal, Pedro & Guimaraes, Paulo, 1995. "The survival of new plants: Start-up conditions and post-entry evolution," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 459-481, December.
    6. Nadeem Ilahi, 1999. "Return Migration and Occupational Change," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 170-186, June.
    7. Talip Kilic & Calogero Carletto & Benjamin Davis & Alberto Zezza, 2009. "Investing back home Return migration and business ownership in Albania1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(3), pages 587-623, July.
    8. Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, vol. 27(3), pages 531-543, May.
    9. Soderbom, Mans & Teal, Francis & Harding, Alan, 2006. "The Determinants of Survival among African Manufacturing Firms," Economic Development and Cultural Change, University of Chicago Press, vol. 54(3), pages 533-555, April.
    10. Chiara Monfardini & Rosalba Radice, 2008. "Testing Exogeneity in the Bivariate Probit Model: A Monte Carlo Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(2), pages 271-282, April.
    11. repec:bla:econom:v:68:y:2001:i:272:p:539-65 is not listed on IDEAS
    12. Astebro, Thomas & Bernhardt, Irwin, 2003. "Start-up financing, owner characteristics, and survival," Journal of Economics and Business, Elsevier, vol. 55(4), pages 303-319.
    13. Barry McCormick & Jackline Wahba, 2003. "Return International Migration and Geographical Inequality: The Case of Egypt," Journal of African Economies, Centre for the Study of African Economies, vol. 12(4), pages 500-532, December.
    14. Veronique A.J.M. Schutjens & Egbert Wever, 2000. "Determinants of new firm success," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 135-153.
    15. repec:bla:obuest:v:61:y:1999:i:3:p:315-41 is not listed on IDEAS
    16. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
    17. Alia El Mahdi & Ali Rashed, 2007. "The Changing Economic Environment and the Development of the Micro and Small Enterprises in Egypt 2006," Working Papers 706, Economic Research Forum, revised 01 Jan 2007.
    18. Mahdī, ʻĀliyah., 2002. "Towards decent work in the informal sector the case of Egypt," ILO Working Papers 993661433402676, International Labour Organization.
    19. Almus, Matthias & Nerlinger, Eric A, 1999. "Growth of New Technology-Based Firms: Which Factors Matter?," Small Business Economics, Springer, vol. 13(2), pages 141-154, September.
    20. Gordon H Hanson & Craig McIntosh, 2010. "The Great Mexican Emigration," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 798-810, November.
    21. Gordon H. Hanson & Craig McIntosh, 2012. "Birth Rates and Border Crossings: Latin American Migration to the US, Canada, Spain and the UK," Economic Journal, Royal Economic Society, vol. 122(561), pages 707-726, June.
    22. Colombo, Massimo G. & Grilli, Luca, 2005. "Founders' human capital and the growth of new technology-based firms: A competence-based view," Research Policy, Elsevier, vol. 34(6), pages 795-816, August.
    23. Taylor, Mark P, 1999. "Survival of the Fittest? An Analysis of Self-Employment Duration in Britain," Economic Journal, Royal Economic Society, vol. 109(454), pages 140-155, March.
    24. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    25. Kilic, Talip & Carletto, Calogero & Davis, Benjamin & Zezza, Alberto, 2007. "Investing back home: return migration and business ownership in Albania," ESA Working Papers 289043, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    26. Nadim Ahmad & Richard G. Seymour, 2008. "Defining Entrepreneurial Activity: Definitions Supporting Frameworks for Data Collection," OECD Statistics Working Papers 2008/1, OECD Publishing.
    27. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February.
    28. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
    29. William Greene, 1998. "Gender Economics Courses in Liberal Arts Colleges: Comment," Working Papers 98-06, New York University, Leonard N. Stern School of Business, Department of Economics.
    30. Vijverberg, WimP. M. & Haughton, Jonathan, 2002. "Household enterprises in Vietnam : survival, growth, and living standards," Policy Research Working Paper Series 2773, The World Bank.
    31. Dilip Ratha & Sonia Plaza, 2011. "Diaspora for Development in Africa," World Bank Publications - Books, The World Bank Group, number 2295.
    32. repec:bla:scotjp:v:48:y:2001:i:2:p:164-78 is not listed on IDEAS
    33. repec:dau:papers:123456789/10767 is not listed on IDEAS
    34. Piracha, Matloob & Vadean, Florin, 2009. "Return Migration and Occupational Choice," IZA Discussion Papers 3922, Institute of Labor Economics (IZA).
    35. World Bank, 2011. "Regional Highlights World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 27344.
    36. Mead, Donald C. & Liedholm, Carl, 1998. "The dynamics of micro and small enterprises in developing countries," World Development, Elsevier, vol. 26(1), pages 61-74, January.
    37. Hatton, Timothy J. & Williamson, Jeffrey G., 1998. "The Age of Mass Migration: Causes and Economic Impact," OUP Catalogue, Oxford University Press, number 9780195116519.
    38. Beck, Thorsten & Demirguc-Kunt, Asli, 2006. "Small and medium-size enterprises: Access to finance as a growth constraint," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2931-2943, November.
    39. William H. Greene, 1998. "Gender Economics Courses in Liberal Arts Colleges: Further Results," The Journal of Economic Education, Taylor & Francis Journals, vol. 29(4), pages 291-300, January.
    40. Mark P. Taylor, 2001. "Self–Employment and Windfall Gains in Britain: Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 68(272), pages 539-565, November.
    41. Gourieroux, Christian & Monfort, Alain & Renault, Eric & Trognon, Alain, 1987. "Generalised residuals," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 5-32.
    42. Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
    43. C. Mirjam van Praag, 2003. "Business Survival and Success of Young Small Business Owners," Tinbergen Institute Discussion Papers 03-050/3, Tinbergen Institute.
    44. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315.
    45. Schiller, Bradley R & Crewson, Philip E, 1997. "Entrepreneurial Origins: A Longitudinal Inquiry," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 523-531, July.
    46. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.
    47. Barry McCormick & Jackline Wahba, 2001. "Overseas Work Experience, Savings and Entrepreneurship Amongst Return Migrants to LDCs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 164-178, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bertoli, Simone & Marchetta, Francesca, 2015. "Bringing It All Back Home – Return Migration and Fertility Choices," World Development, Elsevier, vol. 65(C), pages 27-40.
    2. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    3. Mezger Kveder, Cora Leonie & Flahaux, Marie-Laurence, 2013. "Returning to Dakar: A Mixed Methods Analysis of the Role of Migration Experience for Occupational Status," World Development, Elsevier, vol. 45(C), pages 223-238.
    4. Wahba, Jackline & Zenou, Yves, 2012. "Out of sight, out of mind: Migration, entrepreneurship and social capital," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 890-903.
    5. 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).
    6. Tiwari, Smriti, 2021. "Do macroeconomic fluctuations at destination matter in determining migrants’ return decisions?," World Development, Elsevier, vol. 148(C).
    7. Naudé, Wim & Siegel, Melissa & Marchand, Katrin, 2015. "Migration, Entrepreneurship and Development: A Critical Review," IZA Discussion Papers 9284, Institute of Labor Economics (IZA).
    8. Vereno Brugiatelli, 2022. "Living, Narrating and Enhancing the Landscape Through the Ethics of Responsibility," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 7, ejms_v7_i.
    9. Liqiong Lin & Mohamad D. Revindo & Christopher Gan & Quang Thi Thieu Nguyen, 2021. "Return home and start new businesses: internal migration in China," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 49-66, May.
    10. Craig Loschmann & Katrin Marchand, 2021. "The labor market reintegration of returned refugees in Afghanistan," Small Business Economics, Springer, vol. 56(3), pages 1033-1045, February.
    11. 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).
    12. Kevin J. A. Thomas & Christopher Inkpen, 2013. "Migration Dynamics, Entrepreneurship, and African Development: Lessons from Malawi," International Migration Review, Wiley Blackwell, vol. 47(4), pages 844-873, December.
    13. Jiangbin Yin & Xiaoyan Huang & Yunyun Dong & Min Zhao & Weibao Tan, 2021. "Dual‐level impact of regional context and individual attributes on entrepreneurship among return migrants in China," Growth and Change, Wiley Blackwell, vol. 52(2), pages 1099-1116, June.
    14. Luis Miguel Tovar Cuevas & María Teresa Victoria Paredes, 2013. "Migración internacional de retorno y emprendimiento: revisión de la literatura," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 15(29), pages 41-65, July-Dece.
    15. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    16. Jamal Bouoiyour & Amal Miftah, 2017. "Do Migrants Transfer Political and Cultural Norms to Their Origin Country? Some Evidence From Some Arab Countries," Working Papers 1098, Economic Research Forum, revised 05 2017.
    17. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.
    18. Jackline Wahba, 2015. "Selection, selection, selection: the impact of return migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 535-563, July.
    19. Corrado Giulietti & Jackline Wahba & Klaus F. Zimmermann, 2013. "Entrepreneurship of the Left-Behind," Research in Labor Economics, in: Labor Market Issues in China, pages 65-92, Emerald Group Publishing Limited.
    20. Marcus H. Böhme, 2015. "Does migration raise agricultural investment? An empirical analysis for rural Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 211-225, March.

    More about this item

    Keywords

    return migration; entrepreneurial activities; panel data; endogeneity; North Africa; Egypt;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:halshs-00693988. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.