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Investing back home : return migration and business ownership in Albania

Author

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  • Kilic, Talip
  • Carletto, Calogero
  • Davis, Benjamin
  • Zezza, Alberto

Abstract

In view of its increasing importance, and the dearth of information on return migration and its impacts on source households, this study uses data from the 2005 Albania Living Standards Measurement Study survey and assesses the impact of past migration experience of Albanian households on non-farm business ownership through instrumental variables regression techniques. Moreover, considering the differences in earning potentials and opportunities for skill acquisition in different destination countries, the impact of household past migration experience is differentiated by main migrant destinations, namely Greece and Italy. The study also tests for the hypothesis of the existence of migration cycles, by differentiating the time spent abroad based on the year of return. The empirical results indicate that household past migration experience exerts a positive impact on the probability of owning a non-farm business. While one additional year in Greece increases the probability of household business ownership by roughly 7 percent, a similar experience in Italy or further destinations raises the probability by over 30 percent. Although past migration experience for the period 1990-2000 is positively associated with the likelihood of owning a household enterprise, a similar impact does not materialize for the period 2001-2004. The latter finding seems suggestive of the fact that more recent migrants are yet to attain a target level of required savings and skills in order to successfully establish a new business upon return.

Suggested Citation

  • Kilic, Talip & Carletto, Calogero & Davis, Benjamin & Zezza, Alberto, 2007. "Investing back home : return migration and business ownership in Albania," Policy Research Working Paper Series 4366, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4366
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    Citations

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    Cited by:

    1. Marjan Petreski & Nikica Mojsoska-Blazevski & Maja Ristovska & Edi Smokvarski, 2014. "Youth Self-Employment in Households Receiving Remittances in Macedonia," Working Papers PMMA 2014-08, PEP-PMMA.
    2. 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.
    3. Kalaj, Ermira Hoxha, 2009. "Do Remittances Alter Labor Market Participation? A Study of Albania," MPRA Paper 48271, University Library of Munich, Germany.
    4. Martinez, Candace & Cummings, Michael E. & Vaaler, Paul M., 2015. "Economic informality and the venture funding impact of migrant remittances to developing countries11Please contact Paul M. Vaaler regarding this paper. This research benefitted from a presentation at ," Journal of Business Venturing, Elsevier, pages 526-545.
    5. Wan-Hsin Liu, 2014. "Relevance of Own R&D and Sources of Knowledge Transfer for Industrial Innovation in China," The Developing Economies, Institute of Developing Economies, vol. 52(1), pages 1-25, March.
    6. Mendola, Mariapia & Carletto, Calogero, 2012. "Migration and gender differences in the home labour market: Evidence from Albania," Labour Economics, Elsevier, vol. 19(6), pages 870-880.
    7. Kathleen Beegle & Joachim De Weerdt & Stefan Dercon, 2011. "Migration and Economic Mobility in Tanzania: Evidence from a Tracking Survey," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 1010-1033, August.
    8. World Bank, 2010. "Albania - The New Growth Agenda : A Country Economic Memorandum," World Bank Other Operational Studies 2935, The World Bank.
    9. Marchetta, Francesca, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," World Development, Elsevier, vol. 40(10), pages 1999-2013.
    10. Ambrosini, J. William & Mayr, Karin & Peri, Giovanni & Radu, Dragos, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and Long-Run Implications," IZA Discussion Papers 6664, Institute for the Study of Labor (IZA).
    11. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.
    12. 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.

    More about this item

    Keywords

    Population Policies; Access to Finance; Debt Markets; Voluntary and Involuntary Resettlement;

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