Does immigration crowd out foreign direct investment inflows? Tradeoff between contemporaneous FDI-immigration substitution and ethnic network externalities

Tomohara, Akinori

doi:10.1016/j.econmod.2017.03.008

Cited by 31 publications

(30 citation statements)

References 13 publications

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“…Since the seminal work of Gould (1994), extensive research has examined the positive relationship between trade, FDI, and international migration (Rauch and Trindade, 2002;Bastos and Silva, 2012;Cuadros et al, 2016;Tomohara, 2017). Most of these studies have focused on the role of immigration in transferring transnational business information.…”

Section: Literature Reviewmentioning

confidence: 99%

“…89%. 2 Meanwhile, a substantial literature has documented that immigration can exert multiple economic impacts on the receiving countries, such as on trade (Gould, 1994;Rauch and Trindade, 2002;Bastos and Silva, 2012), on foreign direct investment (FDI) (Cuadros et al, 2016;Tomohara, 2017), and on the labor market (Edo and Toubal, 2017;Martins et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

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International talent inflow and R&D investment: Firm-level evidence from China

2020

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Using firm-level R&D data with regional international talent data, we find that international talent increases the R&D investment of Chinese manufacturing firms, a result that is further confirmed with patent data and under a number of robustness checks. These findings stem from two mechanisms: international talent boosts human capital accumulation and provides a diversified labor force. Further, the R&D promoting effect is stronger if firms are located in eastern China rather than in other regions, of small and medium-sized rather than large-sized, of domestic ownership rather than foreign ownership. The policy implication is, the introduction of international talent can be a new way to promoting R&D investment, especially for skilled-labor constrained countries. and examine the impact of ITI on firms' R&D investment in China. The results indicate that ITI increases the R&D investment of Chinese manufacturing firms, and the promoting effect is stronger if the firms are located in eastern China. Further, ITI increases the R&D investment of small and medium-sized firms (SMEs) more than large-sized firms, and increases the R&D investment of domestic firms but not foreign firms. In addition, using patent data, we confirm the positive effect of ITI on firm-level innovation. These findings suggest that the introduction of international talent is a new way to promoting firm-level R&D investment, and it is especially important for SMEs and domestic firms which are more resource constrained.In the theoretical literature, several mechanisms, such as a human capital accumulation effect and a labor force diversity effect, have been posited to explain the influence of immigration on innovation. On the one hand, the former effect states that ITI increases the number of research workers and enriches the local knowledge base,

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

International talent inflow and R&D investment: Firm-level evidence from China

2020

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“…This reflects the regulatory role of social and cultural connections on the emigration effect. Tomohara (2017) further suggested that the emigration network has significantly increased the import and export of enterprises and transnational investment.…”

Section: Introductionmentioning

confidence: 99%

The Influence of Emigration on Tourism Outward Foreign Direct Investment: Evidence from China

Song

Shi

Chen

et al. 2019

Journal of Travel Research

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With the growth of economic globalization and international tourism, tourism outward foreign direct investment (OFDI) has become a significant phenomenon in the development of the tourism industry. This article aims to estimate how emigration affects OFDI in tourism. It develops the theoretical framework of the effects of emigration on tourism OFDI, including the outbound tourism effect, the economic effect, the cultural effect, and the social effect. The empirical evidence in China reveals a significant effect of Chinese emigration on China’s tourism OFDI. However, this positive effect is found to decrease over time. This study also suggests that the level of development in the destination country, cultural distance, and geographical distance determine the size of this positive effect. Lastly, it was found that Chinese emigration has also had a positive effect on China’s OFDI in tourism to developed economies and neighboring economies.

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“…His research shows the emergence of temporary workers at an early stage but, in the long term, their activity began to inch down. Tomohara (2017) shows that, over time, immigration began to have a negative impact on FDI flows into the country of origin; this was particularly the case for short-term but larger immigration stocks, but also for ethnic networks that generally stimulate FDI flows. All in all, several studies show the relationship between FDI in less developed economies and migration flows, but the topic of migration requires a more in-depth analysis of migration and immigration, with particular emphasis on the dynamics of these processes and flows, so researchers must answer the key question: What is the relationship between immigration and FDI over time?…”

Section: Literature Review and Theory Developmentmentioning

confidence: 99%

The International Movements of Capital and Labour: A Study of Foreign Direct Investment and Migration Flows

Mihi-Ramírez

Arteaga-Ortíz

Ojeda-González

2019

EBER

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A B S T R A C T Objective:The study seeks to analyse the interaction of foreign direct investment, emigration, and immigration before and after the great economic recession. Research Design & Methods:We used the Linear Mixed Model (LMM) to analyse interaction of foreign direct in-vestment (FDI), emigration, and immigration for 112 countries with which Spain has closely interconnected migratory and investment chains, and we focused on the analy-sis of both the pre-crisis 1998-2007 and post-crisis 2008-2016 periods. Findings: The results show that the higher number of immigrants in Spain is related to an overall higher Spanish FDI flows toward the immigrants' origin countries. This relation between migration and FDI might be sustained in the long run as opposed to what was often raised in classical approaches. In fact, migration and FDI act like two sides of the same coin. Implications & Recommendations: Based on our results, we propose more proactive migration policies that support inte-gration in host countries, migrants' return to home countries, and also trade agree-ments as an instrument that endorses selective FDI flow to more productive and criti-cal sectors in home countries. Moreover, our results show that lower FDI is usually associated with a higher volume of emigration from Spain. Contribution & Value Added: In a sense, FDI and migration may be considered a risk aversion strategy. Article type:research paper

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Does immigration crowd out foreign direct investment inflows? Tradeoff between contemporaneous FDI-immigration substitution and ethnic network externalities

Cited by 31 publications

References 13 publications

International talent inflow and R&D investment: Firm-level evidence from China

International talent inflow and R&D investment: Firm-level evidence from China

The Influence of Emigration on Tourism Outward Foreign Direct Investment: Evidence from China

The International Movements of Capital and Labour: A Study of Foreign Direct Investment and Migration Flows

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