Skilled Migration and Business Networks

Centro Studi Luca d'Agliano Development Studies Working Paper No. 234

39 Pages Posted: 25 Jul 2007

See all articles by Frédéric Docquier

Frédéric Docquier

Université catholique de Louvain; CREAM, Centre for Research on Environmental Appraisal & Management, UK; IZA Institute of Labor Economics

Elisabetta Lodigiani

Ca Foscari University of Venice; University of Milan; University of Milan - Centro Studi Luca d'Agliano (LdA)

Date Written: May 2007

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 migrants, 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. These network externalities are stronger for countries exhibiting intermediate corruption index.

Keywords: FDI, Migration, Brain drain, Network, Diaspora

JEL Classification: F2, O15, Z13

Suggested Citation

Docquier, Frédéric and Lodigiani, Elisabetta, Skilled Migration and Business Networks (May 2007). Available at SSRN: https://ssrn.com/abstract=1002649 or http://dx.doi.org/10.2139/ssrn.1002649

Frédéric Docquier

Université catholique de Louvain ( email )

IRES
Place Montesquieu 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://https://perso.uclouvain.be/frederic.docquier/

CREAM, Centre for Research on Environmental Appraisal & Management, UK

University of Newcastle
NE1 7RU Newcastle Upon Tyne
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Elisabetta Lodigiani (Contact Author)

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

University of Milan ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

University of Milan - Centro Studi Luca d'Agliano (LdA)

Via P. Amedeo 34
Milano, Mi 20122
Italy

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