Why Diasporas Invest in the Homeland: A Conceptual Model of Motivation

37 Pages Posted: 22 May 2007  

Tjai M. Nielsen

High Point University - Earl N. Phillips School of Business

Liesl Riddle

George Washington University

Date Written: July 1, 2007

Abstract

Little is known about why diaspora members invest in their homelands or why investment intensity varies among diaspora communities. Employing an interdisciplinary approach, we generate a multi-level, conceptual model of diaspora homeland investment. Our model examines the effects of inter-diaspora cultural differences, support from diaspora organizations, and three types of investment expectations - financial, social, and emotional - to better understand this phenomenon.

Keywords: diaspora, foreign investment, cultural distance, social embeddedness, subculture

JEL Classification: F22, A14, O19, Z1

Suggested Citation

Nielsen, Tjai M. and Riddle, Liesl, Why Diasporas Invest in the Homeland: A Conceptual Model of Motivation (July 1, 2007). Available at SSRN: https://ssrn.com/abstract=987725 or http://dx.doi.org/10.2139/ssrn.987725

Tjai M. Nielsen

High Point University - Earl N. Phillips School of Business ( email )

933 Montlieu Avenue
High Point, NC 27262
United States

Liesl Riddle (Contact Author)

George Washington University ( email )

2201 G Street NW
Funger Hall Suite 401
Washington, DC 20052
United States
(202) 994-1217 (Phone)
(202) 994-7422 (Fax)

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