Article first published online: 12 JAN 2013
© 2013 Blackwell Publishing Ltd.
The World Economy
Volume 36, Issue 5, pages 537–562, May 2013
How to Cite
Wang, M., Wong, M. C. S. and Granato, J. (2013), The Effect of Foreign Direct Investment on International Migration: Does Education Matter?. World Economy, 36: 537–562. doi: 10.1111/twec.12047
- Issue published online: 8 MAY 2013
- Article first published online: 12 JAN 2013
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.