Inward FDI, remittances and out-migration

Abstract

In this study, we look at the relationship between remittances received at home, inward Foreign Direct Investment (FDI) and out-migration of individuals with different levels of education. Using the bilateral international migration data in 1990 and 2000, we find that inward FDI tends to deter the out-migration of individuals with secondary and tertiary education, but has no significant impact on the out-migration of individuals with primary education. In addition, remittances received at home induce the out-migration of individuals with primary education, but not the out-migration of individuals with secondary and tertiary education. The stock of existing migrants in a foreign country encourage future out-migration regardless of migrants' levels of education.

Notes

¹ http://migration.ucdavis.edu/mn/data/remittances/aboutremit.html

²Δmigration^e _ji  = migration^e _ji ,₂₀₀₀ − migration^e _ji ,₁₉₉₀, with e = primary, secondary and tertiary education.

³Equation 1 is equivalent to migration^e _{ji , 2000} = α +  (1 +  γ) migration^e _{ji , 1990} +  β FDI _ij,1990 +  θ remittances_{j ,1990} +  δ Z ₁₉₉₀ +  ε _ji