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Migration and Foreign Direct Investment in the Globalization Context: the Case of a Small Open Economy

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  • Artjoms Ivlevs

    (CEDERS, Université de la Mediterranée Aix-Marseille II)

Abstract

The main objective of the paper is to establish the link between the exogenous migration shocks and endogenous foreign direct investment flows in a small open economy setting with international capital mobility, immobile labour and a non-traded good. I find that the immigration of the high-skilled individuals and FDI flows are always complements in the quantity sense. The immigration of the low-skilled individuals will cause an outflow (inflow) of capital, if domestic non-traded and imported goods are relatively weak (strong) substitutes in consumption. Besides, I explain the attitudes of native individuals towards high-skilled and low-skilled immigrants.

Suggested Citation

  • Artjoms Ivlevs, 2006. "Migration and Foreign Direct Investment in the Globalization Context: the Case of a Small Open Economy," Development Working Papers 209, Centro Studi Luca d'Agliano, University of Milano.
    • Handle: RePEc:csl:devewp:209
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    File URL: https://www.dagliano.unimi.it/media/WP2006_209.pdf
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    References listed on IDEAS

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    1. Facchini, Giovanni & Willmann, Gerald, 2005. "The political economy of international factor mobility," Journal of International Economics, Elsevier, vol. 67(1), pages 201-219, September.
    2. Anna Maria Mayda, 2006. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 510-530, August.
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    10. Jean-Marie Grether & Jaime de Melo & Tobias Müller, 2015. "The Political Economy of International Migration in a Ricardo–Viner Model," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 17, pages 411-437, World Scientific Publishing Co. Pte. Ltd..
    11. O'Rourke, Kevin H. & Sinnott, Richard, 2006. "The determinants of individual attitudes towards immigration," European Journal of Political Economy, Elsevier, vol. 22(4), pages 838-861, December.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Masood Gheasi & Peter Nijkamp & Piet Rietveld, 2013. "Migration and foreign direct investment: education matters," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 73-87, August.
    2. Daniela Federici & Marilena Giannetti, 2010. "Temporary Migration and Foreign Direct Investment," Open Economies Review, Springer, vol. 21(2), pages 293-308, April.
    3. Jacques Poot & Anna Strutt, 2010. "International Trade Agreements and International Migration," The World Economy, Wiley Blackwell, vol. 33(12), pages 1923-1954, December.
    4. Shin, Geiguen, 2019. "Direct and indirect impacts of liberal immigration policies on the inflow of multinationals in the U.S," Economics Discussion Papers 2019-42, Kiel Institute for the World Economy (IfW Kiel).
    5. Xu, Xu & Sylwester, Kevin, 2016. "The effects of foreign direct investment on emigration: The roles of FDI source country, education, and gender," Economic Modelling, Elsevier, vol. 55(C), pages 401-409.
    6. Daniela Federici & Marilena Giannetti, 2010. "Temporary Migration and Foreign Direct Investment," Open Economies Review, Springer, vol. 21(2), pages 293-308, April.

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    More about this item

    Keywords

    international factor mobility; non-traded good; general equilibrium; imperfect import substitution (Armington assumption); direct democracy; EU enlargement;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • 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

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