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Inward FDI, remittances and out-migration

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  • Miao Wang
  • M. C. Sunny Wong

Abstract

In this study, we look at the relationship between remittances received at home, inward Foreign Direct Investment (FDI) and out-migration of individuals with different levels of education. Using the bilateral international migration data in 1990 and 2000, we find that inward FDI tends to deter the out-migration of individuals with secondary and tertiary education, but has no significant impact on the out-migration of individuals with primary education. In addition, remittances received at home induce the out-migration of individuals with primary education, but not the out-migration of individuals with secondary and tertiary education. The stock of existing migrants in a foreign country encourage future out-migration regardless of migrants' levels of education.

Suggested Citation

  • Miao Wang & M. C. Sunny Wong, 2011. "Inward FDI, remittances and out-migration," Applied Economics Letters, Taylor & Francis Journals, vol. 18(15), pages 1405-1409.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:15:p:1405-1409
    DOI: 10.1080/13504851.2010.539530
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    1. Patricio Aroca & William F. Maloney, 2005. "Migration, Trade, and Foreign Direct Investment in Mexico," The World Bank Economic Review, World Bank, vol. 19(3), pages 449-472.
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    Cited by:

    1. Coon Michael & Neumann Rebecca, 2017. "Follow the Money: Remittance Responses to FDI Inflows," Journal of Globalization and Development, De Gruyter, vol. 8(2), pages 1-20, December.

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