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

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