NDLI: Temporary Migration and Foreign Direct Investment

Content Provider	Springer Nature Link
Author	Federici, Daniela Giannetti, Marilena
Copyright Year	2008
Abstract	The question of complementarity or substitutability of FDI and international labour mobility has not yet been answered. The substitutability assumption does not take into consideration the technological spillover of FDI in the host countries. Moreover, migration flows reveal cultural characteristics and labour force properties of their native country which may stimulate bilateral business networks, strengthening the complementarity assumption between capital and labour flows. In this paper we build a continuous time dynamic model where these offsetting forces are at work. We analyze whether, and to what extent, the increase in labour mobility might affect FDI outflows. A numerical simulation is performed showing that a higher income growth rate corresponds to a higher labour mobility. Some policy implications and further research direction are suggested.
Starting Page	293
Ending Page	308
Page Count	16
File Format	PDF
ISSN	09237992
Journal	Open Economies Review
Volume Number	21
Issue Number	2
e-ISSN	1573708X
Language	English
Publisher	Springer US
Publisher Date	2008-08-02
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Temporary migration Migrant network FDI Dynamic model Development Economics International Economics
Content Type	Text
Resource Type	Article
Subject	Economics and Econometrics

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Temporary Migration and Foreign Direct Investment