Migration and foreign direct investment: education matters

Gheasi, Masood; Nijkamp, Peter; Rietveld, Piet

doi:10.1007/s00168-012-0533-1

Cited by 30 publications

(8 citation statements)

References 31 publications

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“…The same effect was identified in a larger sample with 92 home countries (developing and developed) and 25 host developed countries (Cuadros et al, 2016). In the case of the UK and ethnic networks from OECD countries, unlike previous results, only skilled immigrants show a positive effect on firms' choice of location (Gheasi et al, 2013). This evidence suggests that skilled ethnic networks have a positive effect on firms' location decisions and the effect is stronger than low-skilled ethnic networks.…”

Section: Network Firms' Localization and Hypothesessupporting

confidence: 68%

“…In previous studies, the dataset included members of networks from different regions. For instance, Gheasi et al (2013), Hernandez (2014, Cuadros et al (2016) and Tomahara (2017) consider both developing and developed home countries. Shukla and Cantwell (2018) Foad (2012) uses Africa and the Middle East.…”

Section: Discussionmentioning

confidence: 99%

“…In previous studies, the dataset included members of networks from different regions. For instance, Gheasi et al (2013), Hernandez (2014), Cuadros et al (2016) and Tomahara (2017) consider both developing and developed home countries. Shukla and Cantwell (2018) use a sample with one group of lowincome countries from different regions, and Estrin et al (2018) use only emerging market countries that are not homogeneous (Brazil, China, India, Russia, South Africa, Mexico and Turkey).…”

Section: Discussionmentioning

confidence: 99%

“…In this case, ethnic networks have a positive impact on firms' choice of location (Kim and Aguilera, 2016) because firms from developed and developing countries are attracted by ethnic networks to locate their operations in developed host countries (Estrin et al, 2018). The same behavior occurs for the USA (Hernandez, 2014;Shukla and Cantwell, 2018), Japan (Tomohara, 2017), the UK (Gheasi et al, 2013) and Germany (Buch et al, 2006), but in this last case, the relationship is only positive for firms from other developed economies.…”

Section: Introductionmentioning

confidence: 89%

“…This model has been broadly used to analyze trade flows (Leblang, 2010;Van Bergeijk and Brakman, 2010) as well as bilateral flows of FDI (Bergstrand and Egger, 2010;Head and Ries, 2008). The academic community has accepted this modeling approach as a common practice (Blonigen et al, 2007;Garas et al, 2016;Gheasi et al, 2013) because of its applicability to the phenomena under study (Navaretti et al, 2004).…”

Section: Methodology and Datamentioning

confidence: 99%

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Ethnic networks and multinational firms’ location decisions

Alcaraz

Salamanca

Regalado-Pezúa

2020

RIBS

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Purpose The purpose of this study is to identify the effect of ethnic networks on firms’ location decisions using social network theory and the homophily principle. Design/methodology/approach A traditional gravity model is used on a sample composed of high-skilled and low-skilled ethnic networks and multinational enterprises (MNEs) from Latin America, North America and the European Union. Findings Contrary to findings of previous studies, ethnic networks do not appear to influence location decisions of Latin American firms expanding into countries from North America and the European Union. This might be because of weak ethnic connections among the players. Practical implications Managers must be aware that ethnic networks not always can be used for the strategy of the firm, at least regarding location. Social implications Governments and entrepreneurial and immigrant associations from home and host countries could develop initiatives addressed to strengthening the links between the members of the networks. Originality/value This study extends the social network theory in the sense that ethnic networks do not always positively affect firms’ location. Moreover, it is important to consider the specific context or features of the members of a network before analyzing its effects on firms’ location.