{"title":"“Migrants know better”: migrants’ networks and FDI","authors":"","doi":"10.1007/s40888-024-00324-3","DOIUrl":null,"url":null,"abstract":"<h3>Abstract</h3> <p>The interrelations between trade, FDI and migrations have an important impact on the global economy that resulted in the golden age of globalization at first and in a process of slowbalization in the last decade. Against this background, this paper focuses on migrations and FDI and shows that migrant networks encourage cross-border investments. The presence of immigrants is likely to attract new FDI from their country of origin. FDI abroad, furthermore, are positively related to the presence of migrants, thanks to their knowledge of the two markets. We apply a multilevel mixed model to disentangle the hierarchical structure of the data in order to test the relations between FDI and (directional) migration flows. More specifically we test how and to what extent the structure of the international migrants’ network contributes to bilateral FDI flows, besides standard models. Results show that migrants’ networks exploit the information migrants have on both source and destination markets, and that a more diverse migrants’ community in investing countries lowers bilateral FDI.</p>","PeriodicalId":44858,"journal":{"name":"Economia Politica","volume":"88 1","pages":""},"PeriodicalIF":2.8000,"publicationDate":"2024-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economia Politica","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1007/s40888-024-00324-3","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
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Abstract
The interrelations between trade, FDI and migrations have an important impact on the global economy that resulted in the golden age of globalization at first and in a process of slowbalization in the last decade. Against this background, this paper focuses on migrations and FDI and shows that migrant networks encourage cross-border investments. The presence of immigrants is likely to attract new FDI from their country of origin. FDI abroad, furthermore, are positively related to the presence of migrants, thanks to their knowledge of the two markets. We apply a multilevel mixed model to disentangle the hierarchical structure of the data in order to test the relations between FDI and (directional) migration flows. More specifically we test how and to what extent the structure of the international migrants’ network contributes to bilateral FDI flows, besides standard models. Results show that migrants’ networks exploit the information migrants have on both source and destination markets, and that a more diverse migrants’ community in investing countries lowers bilateral FDI.
期刊介绍：
This journal publishes peer-reviewed articles that link theory and analysis in political economy, promoting a deeper understanding of economic realities and more effective courses of policy action. Established in 1984, the journal has kept pace with the times in disseminating high-quality and influential research aimed at establishing fruitful links between theories, approaches and institutions. With this relaunch (which combines Springer’s worldwide scientific scope with the Italian cultural roots of il Mulino and Fondazione Edison, whose research has been published by the two mentioned publishers for many years), the journal further reinforces its position in the European and international economic debate and scientific community. Furthermore, this move increases its pluralistic attention to the role that – at the micro, sectoral, and macro level – institutions and innovation play in the unfolding of economic change at different stages of development.
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