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Embedded diasporas: ethnic prejudice, transnational networks and foreign investment

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  • Diego Fossati

Abstract

Ethnic diasporas are important actors in the global economy. Thanks to their transnational networks and cultural skills, migrants help to deepen economic ties between nations. Existing research, however, overlooks that diaspora communities are ethnic minorities embedded in potentially hostile social environments, as they often face social exclusion and discrimination. This article studies the economic implications of international migration by focusing on the relationship between migrant minorities and indigenous majorities. It argues that ethnic prejudice against entrepreneurial diasporas may constrain their ability to foster international economic integration, as it lowers public support for international flows. Empirical support for this hypothesis is found in a survey experiment leveraging on the case of Indonesia, a Muslim-majority society in which a small Chinese minority has long played a key role in domestic and international business. The findings have implications for research on migrant networks, international political economy and diaspora policy.

Suggested Citation

  • Diego Fossati, 2019. "Embedded diasporas: ethnic prejudice, transnational networks and foreign investment," Review of International Political Economy, Taylor & Francis Journals, vol. 26(1), pages 134-157, January.
  • Handle: RePEc:taf:rripxx:v:26:y:2019:i:1:p:134-157
    DOI: 10.1080/09692290.2018.1543721
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    Cited by:

    1. Liou, Ru-Shiun & Faifman, Leon & Ellis, Kimberly, 2023. "Navigating political risk: Protectionism and ownership strategy in cross-border M&As," Journal of Business Research, Elsevier, vol. 162(C).
    2. Simon Hartmann & Thomas Lindner & Jakob Müllner & Jonas Puck, 2022. "Beyond the nation-state: Anchoring supranational institutions in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1282-1306, August.
    3. Sandoz Laure & Mittmasser Christina & Riaño Yvonne & Piguet Etienne, 2022. "A Review of Transnational Migrant Entrepreneurship: Perspectives on Unequal Spatialities," ZFW – Advances in Economic Geography, De Gruyter, vol. 66(3), pages 137-150, October.

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