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The Effect of Foreign Direct Investment on International Migration: Does Education Matter?
Author(s) -
Wang Miao,
Wong M. C. Sunny,
Granato Jim
Publication year - 2013
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12047
Subject(s) - foreign direct investment , linkage (software) , stock (firearms) , economics , investment (military) , demographic economics , brain drain , higher education , international economics , economic growth , political science , geography , macroeconomics , chemistry , law , gene , biochemistry , archaeology , politics
Using migration data in 1990 and 2000, we find that inward foreign direct investment (FDI) in non‐OECD countries affects the out‐migration of individuals with tertiary and secondary education to OECD countries originating the investments, but has no significant effect on the out‐migration of individuals with primary education. Distinguishing between linkage and home effects, our results show a dominant home effect of FDI for individuals with tertiary education, but a stronger linkage effect for those with secondary education. The existing stock of former migrants in foreign countries influences the out‐migration of individuals with primary education.