Emigration Networks, Reverse Migration, and Economic Development

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)31A_Invited conference paper (refereed items)Yespeer-review

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Author(s)

  • Chia Hui LU
  • Laixun ZHAO

Related Research Unit(s)

Detail(s)

Original languageEnglish
Publication statusPublished - 2007

Abstract

This paper explores the role of migration networks in promoting trade and home country development. Migration networks help home firms access foreign markets. The strength of the effect, however, hinges on the mass and talent compositions of the emigrants. Depending on the talent distributions and opportunity costs of migration, two equilibria may emerge--one is that the most talented emigrate, and the other is that the most talented choose to stay home as managers while the intermediate-talented emigrate. It is shown that only in the first case, some talented emigrants will return to their home country to start new businesses, resulting in "reverse migration." In addition to the gains from foreign market access expansion, these talented returnees improve production efficiency and channel knowledge spillover, which further increases the likelihood of economic development.

Citation Format(s)

Emigration Networks, Reverse Migration, and Economic Development. / LU, Chia Hui; ZHAO, Laixun.

2007.

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)31A_Invited conference paper (refereed items)Yespeer-review