Investing Back Homereturn Migration and Business Ownership in Albania

37 Pages Posted: 16 Jun 2009

See all articles by Talip Kilic

Talip Kilic

World Bank - Development Data Group (DECDG)

Calogero Carletto

World Bank; World Bank - Development Research Group (DECRG)

Benjamin Davis

UNICEF South Africa

Alberto Zezza

United Nations - Food and Agriculture Organization (FAO)

Abstract

This study uses data from the 2005 Albania Living Standards Measurement Study survey to assess the impact of past migration experience of Albanian households on non-farm business ownership through instrumental variables regression techniques. Considering the differences in earning potentials and opportunities for skill acquisition in different destination countries, we differentiate the impact of past household migration experience by main migrant destinations. The study also explores the heterogeneity of impact based on the timing of migration. The empirical results indicate that past household 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 6 percent, a similar experience in Italy or farther destinations raises the probability by over 25 percent. Although past household migration experience for the period of 1990-2000 is positively associated with the likelihood of owning a household enterprise, a similar association does not exist for the period of 2001-2004.

Suggested Citation

Kilic, Talip and Carletto, Calogero and Davis, Benjamin and Zezza, Alberto, Investing Back Homereturn Migration and Business Ownership in Albania. Economics of Transition, Vol. 17, Issue 3, pp. 587-623, July 2009, Available at SSRN: https://ssrn.com/abstract=1420364 or http://dx.doi.org/10.1111/j.1468-0351.2009.00357.x

Talip Kilic

World Bank - Development Data Group (DECDG) ( email )

Via Labicana 110
Rome, Lazio 00184
Italy

Calogero Carletto

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Benjamin Davis

UNICEF South Africa ( email )

P. O. Box 4884
Pretoria
South Africa

Alberto Zezza

United Nations - Food and Agriculture Organization (FAO) ( email )

Viale delle Terme di Caracalla
Rome, Lazio 00100
Italy

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