The Migration And FDI Puzzle: Complements Or Substitutes?
- Topics:
- Foreign Direct Investment
- Tags:
- Currency & Foreign Exchange,
- Finance,
- Foreign Direct Investment,
- Foreign Direct Investment (FDI),
- Investment,
- Migration,
- University Of Rome
- Source:
- University of Rome
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Overview: This paper analyses the link between FDI (Foreign Direct Investment) inflows and migration waves from developing countries. In addition, it investigates mechanisms through which this link works. Empirical results indicate that FDI can be seen as substitutes of migration through direct and indirect labour demand. However, the paper demonstrates that a positive relationship (complementarity effect) between FDI and migration flows takes place. In longitudinal analysis results indicate that the complementarity effect prevails. In cross section analysis, estimating a two equation models, the authors found that a substitutability effect is at work through the impact of FDI on human capital accumulation but the direct complementarity effect also prevails.
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Format: PDF | Size: 178KB | Date: Oct 2006 | Pages: 22
