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Skilled migration and business networks

Author

Listed:
  • Frédéric Docquier
  • Elisabetta Lodigiani

    (CREA, University of Luxembourg)

Abstract

The role of migrants' networks in promoting cross border investments has been stressed in the literature, possibly making migration and FDI complements rather than substitutes in the long run. In this paper, we estimate the magnitude of such business network externalities in dynamic empirical models of FDI-funded capital accumulation. We use original data on capital and migration stocks rather than flows. Regarding mi- grants, we distinguish the total and the skilled diasporas abroad. In both cross-sectional and panel frameworks, we find evidence of strong network externalities, mainly associated to the skilled diaspora.

Suggested Citation

  • Frédéric Docquier & Elisabetta Lodigiani, 2008. "Skilled migration and business networks," DEM Discussion Paper Series 08-11, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:08-11
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    More about this item

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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