Maurice Kugler - Research - International Migration

International Migration

Research on the determinants FDI location shows evidence consistent with the incorporation of skilled migrants into business networks at the destination country. The links created by these migrants appear to create opportunities for investors in the destination country for FDI project at the migrants' countries of origin. FDI creates jobs where workers have left because those workers convey information to MNC headquarters.

(See e.g. Souraya El Yaman, Maurice Kugler and Hillel Rapoport (2006), "Migration and Foreign Investments across the European Union: What are the Links?" Revue Economique, Vol. 58, No. 3, pp. 725–733).

Research on the impact of remittances to mitigate brain drain analyzes conditions under which migration can have a positive impact on human capital formation. There is a direct channel as remittance recipients overcome borrowing constraints to invest in schooling. And there is an indirect channel since the greater supply of human capital can generate creation of skilled jobs, through a thick-market externality. The likelihood that new human capital formation, associated with remittances, exceeds brain drain is higher in the context of well-functioning education systems and labor markets.

(See e.g. Kugler, Maurice, and Emanuela Lotti (2007), "Migrant Remittances, Human Capital Formation and Job Creation Externalities in Central America," Integration & Trade Journal 27 (July-December): 105-134).

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