Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/204006 
Year of Publication: 
2018
Series/Report no.: 
wiiw Working Paper No. 141
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
Abstract: 
In this paper we examine the importance of migrant stocks on FDI flows from a sample of 19 developed countries to around 150 partner countries using a modified version of the gravity model. Based on recent advances in the modelling of trade using the gravity model we include a variety of fixed effects to control for various sources of endogeneity and deal with the issue of many zero and negative values of FDI. We further adopt an instrumental variables approach to deal with potential simultaneity. Results suggest that migrant stocks are positively associated with higher FDI inflows and outflows, with the effects working largely by enhancing the strength of existing FDI relationships rather than developing new relationships. We find little evidence of heterogeneous effects by skill level of the migrants.
Subjects: 
migration
FDI flows
gravity equation
JEL: 
F22
F23
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.