Kiel Working Papers, Kiel Institute for World Economics
No 1190:
Where Enterprises Lead, People Follow? Links between Migration and German FDI
Claudia M. Buch, Jörn Kleinert and Farid Toubal
Abstract: Globalization has affected the integration of markets
through many different channels, including movements of factors and trade
in goods. From a theoretical point of view, the interaction between the
different channels of integration can take different forms. The aim of this
paper is to analyze the interaction between different channels of
integration empirically. More specifically, we use state-level German data
to answer the question whether and how migration and FDI decisions and thus
integration of labor and capital markets are linked. Our findings suggest
that FDI and migration have similar determinants. Moreover, there is
substantial evidence that factors cluster.
Keywords: migration, foreign direct investment, network effects; (follow links to similar papers)
JEL-Codes: F0,; F21,; F22; (follow links to similar papers)
59 pages, November 2003
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