IDEAS home Printed from https://ideas.repec.org/a/taf/rripxx/v21y2014i2p432-466.html
   My bibliography  Save this article

Diaspora-owned firms and social responsibility

Author

Listed:
  • Benjamin A.T. Graham

Abstract

A causal relationship between diaspora populations and bilateral foreign direct investment has been established empirically, but the question of which elements of diaspora difference are responsible for this relationship, and what this implies for development, remains unanswered. A growing literature in economic sociology and business suggests that diaspora investors are motivated by patriotism and other social and emotional factors, endowing them with unique potential as a force for international development. This literature argues that diaspora-owned firms are more socially responsible than other foreign firms, and engage in a range of economic development-promoting behaviors when investing in the homeland: hiring more local labor, paying higher wages, and making more contributions to charity. I argue that diaspora-owned firms enjoy competitive advantages in the homeland based on access and attention to information. I evaluate these theories at the firm level, using data from an original survey of 174 foreign-owned firms in the post-conflict country of Georgia. Across a range of self-reported behaviors and priorities, I find no evidence that diaspora-owned firms are more likely to engage in a specific set of socially responsible, pro-development behaviors than are other foreign firms, and some evidence that they are less likely to do so. I argue that diaspora investors are uniquely capable, but not uniquely philanthropic, when doing business in their homelands.

Suggested Citation

  • Benjamin A.T. Graham, 2014. "Diaspora-owned firms and social responsibility," Review of International Political Economy, Taylor & Francis Journals, vol. 21(2), pages 432-466, April.
  • Handle: RePEc:taf:rripxx:v:21:y:2014:i:2:p:432-466
    DOI: 10.1080/09692290.2012.747103
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09692290.2012.747103
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09692290.2012.747103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nick Williams, 2018. "Mobilising diaspora to promote homeland investment: The progress of policy in post-conflict economies," Environment and Planning C, , vol. 36(7), pages 1256-1279, November.
    2. Elena Poliakova & Liesl Riddle & Michael E. Cummings, 2020. "Diaspora investment promotion via public–private partnerships: Case-study insights and IB research implications from the Succeed in Ireland initiative," Journal of International Business Policy, Palgrave Macmillan, vol. 3(1), pages 23-37, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rripxx:v:21:y:2014:i:2:p:432-466. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rrip20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.