Migration and FDI: Reconciling the standard trade theory with empirical evidence

Jayet, Hubert; Marchal, Léa

doi:10.1016/j.econmod.2016.06.019

Cited by 14 publications

(14 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This whole process repeated itself in the same way, yet with less intensity, as soon as the first signs of economic improvement emerged (see Figure 1). The results confirm that migration and FDI are complementary, which agrees with earlier results presented by Russell and Teitelbaum (1992), Docquier and Lodigiani (2010), Gheasi et al (2013), Metelski and Mihi-Ramirez (2015), Jayet and Marchal (2016), and Comolli (2018). However, our study brings additional empirical evidence to support the existence of the impact of immigration on FDI, which is based on a wide international sample for different economic phases of the last economic cycle.…”

Section: Resultssupporting

confidence: 92%

“…Moreover, more recently, Metelski and Mihi-Ramirez (2015) confirm that the substitutability of migration and FDI occurs only in certain specific circumstances. In turn, Jayet and Marchal (2016) note that this substitutability or complementarity depends on the country's endowments.…”

Section: Literature Review and Theory Developmentmentioning

confidence: 99%

“…Here, FDI and immigration can be perceived as substitutes. Let us note that Metelski and Mihi-Ramirez (2015) foreground the bidirectionality of labour and capital flows, so that an "investor country" also is a sending country, especially when migrants manage to create networks over time, facilitating the flow of information about business opportunities in their countries of origin while reducing transnational costs (Cuadros et al, 2016;Jayet & Marchal, 2016;Simone & Manchin, 2012;Flisi & Murat, 2011;Docquier & Lodigiani, 2010).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

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

Mihi-Ramírez

Arteaga-Ortíz

Ojeda-González

2019

EBER

View full text Add to dashboard Cite

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

show abstract

Section: Resultssupporting

confidence: 92%

Section: Literature Review and Theory Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

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

Mihi-Ramírez

Arteaga-Ortíz

Ojeda-González

2019

EBER

View full text Add to dashboard Cite

show abstract

“…Particularly, this is happening for emigrants from the European Union and North America to Latin America, directly affecting the OFDI in the same direction. These results are in line with previous research (Song, 2011;Foad, 2012;Jayet and Marchal, 2016). On the basis of the social network theory, the emigration from developed countries to developing countries overcomes the disadvantages that the latter countries exhibit, including institutional conditions (i.e.…”

Section: Discussionsupporting

confidence: 92%

Migration and outward FDI: a double direction approach

Alcaraz

Salamanca

2018

RIBS

View full text Add to dashboard Cite

Purpose The purpose of this study is to identify, based on social network theory, the relationship between the direction of international migration (immigration/emigration) and the international movement of enterprises and their location. Design/methodology/approach A traditional gravity model and the Tobit estimation method are applied to three groups of countries from three different regions: Latin America, North America and the European Union. The study considers a period from 2001 to 2012. Findings The main results suggest that the international migration that goes from the European Union and North America to Latin America is related with the firms’ internationalization and their respective location. Practical implications Given that migration can be an important and reliable source of information, trust and knowledge, managers should see it as a “bridge” between the home and host countries, which, in turn, can increase their competitive advantage. Social implications Governments can learn how migration and outward foreign direct investment interact. In addition, they could develop political frameworks to accurately and effectively manage international migration (immigration and emigration) and FDI in the best interests of the stakeholders. Originality/value This study extends the social network theory by suggesting that networks are not only related with firms’ expansion abroad but as well with their location. This statement could be generalizable as long as emigration/networks (ethnic ties) are considered the links between the home and the host country.

show abstract

“…This means that if FDI increases by 1 unit, it will reduce Migrant Workers in 10 developing countries in Asia Pacific by 80171.75. [8] argues that FDI reduces migration incentives in the short term providing prospective migrants with employment opportunities and in the long term by increasing growth and reducing poverty. The results of this study are in line with [4] theory.…”

Section: Resultsmentioning

confidence: 99%

Analysis of Determinants of Migrant Labor in Developing Countries in Asia Pacific

Adib¹,

Idris²

2021

Proceedings of the Sixth Padang International Conference on Economics Education, Economics, Business and Management, Accounting

View full text Add to dashboard Cite

This study aims to determine and analyze the influence of the relationship between Economic Growth, Unemployment, FDI and the Human Development Index on Migrant Workers in 10 developing countries in Asia Pacific during the period 2010-2018. This type of research is descriptive and associative. The type of data used is secondary data. This study uses a Random Effect Model (REM) approach. The results of this study indicate that: (1) Based on the results of the research conducted, it shows that Economic Growth (X1) has a positive and significant effect on Migrant Workers (Y) in 10 developing countries in Asia Pacific. (2) Based on the results of the equation research shows that unemployment (X2) has a positive effect on Migrant Workers (Y) in 10 developing countries in Asia Pacific. (3) Based on the results of the equation research, FDI (X3) has a positive effect on Migrant Workers (Y) in 10 developing countries in Asia Pacific. (4) Based on the results of the equation research, the Human Development Index (X4) has a positive effect on Migrant Workers (Y) 10 developing countries in Asia Pacific

show abstract

Migration and FDI: Reconciling the standard trade theory with empirical evidence

Cited by 14 publications

References 38 publications

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

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

Migration and outward FDI: a double direction approach

Analysis of Determinants of Migrant Labor in Developing Countries in Asia Pacific

Contact Info

Product

Resources

About