Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/124935
Authors: 
Lücke, Matthias
Stöhr, Tobias
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9419
Abstract: 
We investigate the interplay of language skills and immigrant stocks in determining bilateral FDI out-stocks of OECD reporting countries. Applying a Poisson panel estimator to 2004-2011 data, we find a robust positive effect of bilateral immigrants on bilateral FDI – provided that residents of the two countries have few language skills in common. We find a similar effect for immigrants from third countries that speak the language(s) of the FDI host country, making them potential substitutes for bilateral migrants. Our findings suggest that immigrants facilitate outgoing FDI through their language skills, rather than through other characteristics like cultural familiarity.
Subjects: 
migration
FDI
foreign languages
globalization
JEL: 
F21
F22
O14
Document Type: 
Working Paper

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