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Investing back home Return migration and business ownership in Albania1

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  • Talip Kilic
  • Calogero Carletto
  • Benjamin Davis
  • Alberto Zezza

Abstract

This study uses data from the 2005 Albania Living Standards Measurement Study survey to assess the impact of past migration experience of Albanian households on non‐farm business ownership through instrumental variables regression techniques. Considering the differences in earning potentials and opportunities for skill acquisition in different destination countries, we differentiate the impact of past household migration experience by main migrant destinations. The study also explores the heterogeneity of impact based on the timing of migration. The empirical results indicate that past household migration experience exerts a positive impact on the probability of owning a non‐farm business. While one additional year in Greece increases the probability of household business ownership by roughly 6 percent, a similar experience in Italy or farther destinations raises the probability by over 25 percent. Although past household migration experience for the period of 1990–2000 is positively associated with the likelihood of owning a household enterprise, a similar association does not exist for the period of 2001–2004.

Suggested Citation

  • Talip Kilic & Calogero Carletto & Benjamin Davis & Alberto Zezza, 2009. "Investing back home Return migration and business ownership in Albania1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(3), pages 587-623, July.
    • Handle: RePEc:bla:etrans:v:17:y:2009:i:3:p:587-623
    DOI: 10.1111/j.1468-0351.2009.00357.x
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    Cited by:

    1. J. William Ambrosini & Karin Mayr & Giovanni Peri & Dragos Radu, 2011. "The Selection of Migrants and Returnees: Evidence from Romania and Implications," NBER Working Papers 16912, National Bureau of Economic Research, Inc.
    2. Lucia Mangiavacchi & Luca Piccoli, 2022. "Gender Inequalities Among Adults and Children: Exposure to Migration and the Evolution of Social Norms in Albania," Journal of Family and Economic Issues, Springer, vol. 43(3), pages 546-564, September.
    3. Marchetta, Francesca, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," World Development, Elsevier, vol. 40(10), pages 1999-2013.
    4. Kathleen Beegle & Joachim De Weerdt & Stefan Dercon, 2011. "Migration and Economic Mobility in Tanzania: Evidence from a Tracking Survey," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 1010-1033, August.
    5. Mariapia Mendola & Gero Carletto, 2008. "International migration and gender differentials in the home labor market: evidence from Albania," Working Papers 148, University of Milano-Bicocca, Department of Economics, revised Dec 2008.
    6. Kalaj, Ermira Hoxha, 2010. "Remittances and Human Capital Investment: Evidence from Albania," MPRA Paper 49210, University Library of Munich, Germany.
    7. Sévérin Tamwo & Ghislain Stéphane Gandjon Fankem & Dieudonné Taka, 2022. "Return migration and entrepreneurship in Cameroon," WIDER Working Paper Series wp-2022-75, World Institute for Development Economic Research (UNU-WIDER).
    8. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 13092.
    9. Merita Zulfiu Alili & Nick Adnett, 2021. "Return migrants in Albania: The determinants of “entrepreneurial gain”," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1761-1777, August.
    10. Barbara Dietz, 2010. "Migration and Remittances in Macedonia : A Review," Working Papers 281, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    11. Yu Zhu & Zhongmin Wu & Meiyan Wang & Yang Du & Fang Cai, 2011. "Do Migrants Really Save More? Understanding the Impact of Remittances on Savings in Rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 48(5), pages 654-672, June.
    12. Mahé, Clothilde, 2016. "Skills and entrepreneurship: Are return migrants 'Jacks-of-all-trades'?," MERIT Working Papers 2016-071, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Vereno Brugiatelli, 2022. "Living, Narrating and Enhancing the Landscape Through the Ethics of Responsibility," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 7, ejms_v7_i.
    14. Azzarri, Carlo & Carletto, Calogero, 2009. "Modeling migration dynamics in Albania : a hazard function approach," Policy Research Working Paper Series 4945, The World Bank.
    15. Kalaj, Ermira Hoxha, 2014. "Are remittances spent in a healthy way? Evidence from Albania," SEER Journal for Labour and Social Affairs in Eastern Europe, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(2), pages 237-266.
    16. Ambrosini, J. William & Mayr, Karin & Peri, Giovanni & Radu, Dragos, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and Long-Run Implications," IZA Discussion Papers 6664, Institute for the Study of Labor (IZA).
    17. Mendola, Mariapia & Carletto, Calogero, 2012. "Migration and gender differences in the home labour market: Evidence from Albania," Labour Economics, Elsevier, vol. 19(6), pages 870-880.
    18. Jackline Wahba, 2014. "Return migration and economic development," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 12, pages 327-349, Edward Elgar Publishing.
    19. Craig Loschmann & Katrin Marchand, 2021. "The labor market reintegration of returned refugees in Afghanistan," Small Business Economics, Springer, vol. 56(3), pages 1033-1045, February.
    20. Mahe, Clotilde, 2017. "Occupational choice of return migrants: Is there a 'Jack-of-all-trades' effect?," MERIT Working Papers 2017-039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    21. Jiangbin Yin & Xiaoyan Huang & Yunyun Dong & Min Zhao & Weibao Tan, 2021. "Dual‐level impact of regional context and individual attributes on entrepreneurship among return migrants in China," Growth and Change, Wiley Blackwell, vol. 52(2), pages 1099-1116, June.
    22. Anthony Brown & Royston Meriton & Timothy Devinney & Mario Kafouros & Flor Silvestre Gerardo & Rajinder Bhandal, 2021. "Migrant human and political capitals value in entrepreneur enterprise performance. A comparative study of four emerging markets," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 665-692, June.
    23. Cris Beauchemin & Lama Kabbanji & Bruno Schoumaker, 2009. "Entre parcours de vie des migrants et attentes politiques, quel co-développement en Afrique subsaharienne," Working Papers 166, Institut National d'Études Démographiques (INED).
    24. Elida Cena & Derek Heim, 2022. "A Regretful Journey Home: Albanian Return Migration in the Wake of the Global Financial Crisis of 2008," Journal of International Migration and Integration, Springer, vol. 23(2), pages 499-518, June.

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