Where Enterprises Lead, People Follow? Links between Migration and German FDI

Buch, Claudia M.; Kleinert, Jörn; Toubal, Farid

doi:10.2139/ssrn.523962

Where Enterprises Lead, People Follow? Links between Migration and German FDI

Kiel Working Paper No. 1190

59 Pages Posted: 4 Apr 2004

Ecole Normale Superieure de Cachan (ENS) - Departement of Economics ans Management; National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Date Written: November 2003

Abstract

Globalization has affected the integration of markets through many different channels, including movements of factors and trade in goods. From a theoretical point of view, the interaction between the different channels of integration can take different forms. The aim of this paper is to analyze the interaction between different channels of integration empirically. More specifically, we use state-level German data to answer the question whether and how migration and FDI decisions and thus integration of labor and capital markets are linked. Our findings suggest that FDI and migration have similar determinants. Moreover, there is substantial evidence that factors cluster.

Keywords: Migration, foreign direct investment, network effects

JEL Classification: F0, F21, F22

Suggested Citation: Suggested Citation

Buch, Claudia M. and Kleinert, Jörn and Toubal, Farid, Where Enterprises Lead, People Follow? Links between Migration and German FDI (November 2003). Kiel Working Paper No. 1190. Available at SSRN: https://ssrn.com/abstract=523962 or http://dx.doi.org/10.2139/ssrn.523962