Migrant Business Networks and FDI

Migrant business networks and FDI

Marina Murat*, Sara Flisi**

August 2007

Abstract This paper studies the effects of migration on the bilateral FDI of four European
countries, Germany, Italy, France and the U.K. It is based on four distinct datasets with time spans
going from 1990 to 2004. It focuses on the impact on FDI of skilled and less-skilled immigrants and
on the networks’ ties with the less developed countries. Results are that the effects of skilled
immigrants are positive and robust for both inward and outward FDI, and that networks linked to
the developing countries mostly have stronger effects on the outward FDI than those related to the
developed economies.

Keywords: migrants’ networks, FDI

JEL classification: F21, F23

*University of Modena and Reggio Emilia, ReCent,

** University of Modena and Reggio Emilia, Fondazione “Marco Biagi”.

* corresponding author: e-mail: [email protected], tel. +390592056884-6033, fax
+390592056947, Department of Economics, Viale Berengario, 51. 41100 Modena, Italy

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