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How immigration affects investment and productivity in host and home countries

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  • Volker Grossmann

    (University of Fribourg, Switzerland, and IZA, Germany)

Abstract

Migration policies need to consider how immigration affects investment behavior and productivity, and how these effects vary with the type of migration. College-educated immigrants may do more to stimulate foreign direct investment and research and development than low-skilled immigrants, and productivity effects would be expected to be highest for immigrants in scientific and engineering fields. By raising the demand for housing, immigration also spurs residential investment. However, residential investment is unlikely to expand enough to prevent housing costs from rising, which has important distributional implications.

Suggested Citation

  • Volker Grossmann, 2021. "How immigration affects investment and productivity in host and home countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 292-292, October.
    • Handle: RePEc:iza:izawol:journl:2021:n:292
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    References listed on IDEAS

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    Cited by:

    1. Wulong Gu & Feng Hou & Garnett Picot, 2020. "Immigration and firm productivity: evidence from the Canadian Employer-Employee Dynamics Database," Journal of Productivity Analysis, Springer, vol. 54(2), pages 121-137, December.
    2. Eva Ivanová & Eva Grmanová, 2021. "The Sustainability of EU Labor Immigration in Terms of Poverty Inequalities and Employment," Sustainability, MDPI, vol. 13(4), pages 1-20, February.

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    More about this item

    Keywords

    immigration; innovation; foreign direct investment; residential investment; productivity;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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