Entrepreneurial Migration in an Integrated World

31 Pages Posted: 4 Oct 2018

See all articles by Spiros Bougheas

Spiros Bougheas

University of Nottingham - School of Economics

Rod Falvey

Bond University - Department of Economics

Date Written: October 2018

Abstract

A growing number of developed countries offer entrepreneurial visas as a means of attracting entrepreneurial talent and capital. In this paper, we use a simple two‐sector model of international trade with heterogeneous agents and financial frictions to show that entrepreneurial migration can contribute to the international efficiency of production, even when capital also flows internationally through borrowing and lending and foreign direct investment. In our model, all cross‐border transactions are motivated by cross‐country variations in the quality of financial institutions.

Keywords: Economic integration, entrepreneurial migration, financial frictions, institutions

Suggested Citation

Bougheas, Spiros and Falvey, Rod, Entrepreneurial Migration in an Integrated World (October 2018). The Scandinavian Journal of Economics, Vol. 120, Issue 4, pp. 1171-1201, 2018. Available at SSRN: https://ssrn.com/abstract=3260119 or http://dx.doi.org/10.1111/sjoe.12249

Spiros Bougheas (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Rod Falvey

Bond University - Department of Economics ( email )

Bond University - Department of Economics
Gold Coast, Queensland 4229
Australia

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