Homeward Bound FDI: Are Migrants a Bridge over Trouble Finance?

Migrants can lower cross-border investment barriers, help investors by providing information about their homeland and reduce transaction costs by sharing expertise on regulations, customs and procedures. In addition to generating these well-known networking effects, migrants can also provide valuable information about local finance, thereby easing the credit constraints foreign investors faced during the 2007 financial crisis. This paper sheds new light on the underlying mechanisms through which migration may affect foreign investment in the migrant's homeland by distinguishing between the effects on FDI's intensive and extensive margins. Gravity estimates for 140 countries for the period 2003–2012 suggest that migrants exert a positive effect on bilateral FDI. However, financial constraints moderate this effect, primarily through the extensive margin. Additionally, quantile regression reveals that the interaction between migration and credit constraints is significant only for the lower levels of FDI. Our findings contribute to a better understanding of the interplay among migration, financial constraints and FDI.The authors gratefully acknowledge financial support from the Ministerio de Economía y Competitividad (ECO2011-27619; ECO2014-58975-P; ECO2015-68057-R), Pla de Promociói de la Inves- tigació, Universitat Jaume I (P1.1B2013-22) and from the Catholic University of Valencia (PRUCV/2015/652). They are also indebted to valuable comments from an anonymous referee as well as Frederic Docquier, Amandine Aubry, Farid Toubal and the participants at the 4th Meeting of International Economics organized by the Instituto de Economía Internacional (Universitat Jaume I of Castellón, September 2015

Talent Goes Social: Online Corporate Networking and Business Performance

[EN] This study examines the effect of online social talent on business performance. The paper uses data from a selected sample of 296 companies from the S&P 500 list with active corporate profiles on LinkedIn. The empirical design consists of non-linear techniques to test the hypothesis that financial performance (i.e., revenue) and online social talent (i.e., employee online profile and skills) have a positive and non-linear relationship. The findings show that internal online social talent measured by employees' online profiles, and their skills are positively associated with companies' financial performance. The study provides insights into talent management in the digital age and elucidates the role of online corporate social networking in business performance.This research was funded by MICINN (Spanish Government), grant number RTI2018-100899-B-I00 and Generalitat Valenciana, grant number GV/2020/012.Paniagua, J.; Peris-Ortiz, M.; Korzynski, P. (2020). 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Migration and fdi: the role of job skills

Using a multi-country gravity framework, this paper models and quantifies the relevance of migrants' job position in fostering Foreign Direct Investment (FDI). High-skilled migrants are defined as those individuals born in the investors' home/host country occupying managerial or professional positions in the host/home country of investment. Our estimates show that higher shares of migrants with management skills in a given country promote FDI into that country. In contrast, an increase in the share of migrants in non-qualified positions (regardless of their educational attainment) has a negative impact on FDI decisions. These findings highlight that the FDI-enhancing effect of migrants is related to a shift in their skill composition due to their occupation. We test our model on a new global panel data set of Greenfield bilateral investment with a wide variety of specifications, both at the extensive and intensive margins. Additionally, we provide new insights into the mechanisms by which migration influences FDI flows, with particular attention to the relevance of FDI level and activity

Antecedentes, consecuencias y paradojas del Brexit

En el referéndum celebrado en junio del 2016, los votantes británicos optaron por abandonar la Unión Europea. Este artículo revisa las consecuencias económicas y los antecedentes del Brexit. La evidencia que arrojan los estudios realizados hasta la fecha sugiere unos efectos negativos del Brexit. El diseño de la votación, el descontento con la crisis y los efectos de la globalización ayudan a explicar la paradoja según la cual los votantes optaron por una opción en contra de sus propios intereses económicos. La modulación de estos efectos dependerá del acuerdo final que se negocie entre la UE y el Reino Unido. Sin embargo, existen dos cuestiones abiertas en relación con el Brexit. En primer lugar, los efectos sobre la economía española, que tiene unos estrechos vínculos con la británica. En segundo lugar, las consecuencias sobre la ética empresarial

Antecedentes, consecuencias y paradojas del Brexit

En el referéndum celebrado en junio del 2016, los votantes británicos optaron por abandonar la Unión Europea. Este artículo revisa las consecuencias económicas y los antecedentes del Brexit. La evidencia que arrojan los estudios realizados hasta la fecha sugiere unos efectos negativos del Brexit. El diseño de la votación, el descontento con la crisis y los efectos de la globalización ayudan a explicar la paradoja según la cual los votantes optaron por una opción en contra de sus propios intereses económicos. La modulación de estos efectos dependerá del acuerdo final que se negocie entre la UE y el Reino Unido. Sin embargo, existen dos cuestiones abiertas en relación con el Brexit. En primer lugar, los efectos sobre la economía española, que tiene unos estrechos vínculos con la británica. En segundo lugar, las consecuencias sobre la ética empresarial

Cross-Border Higher Education : The Expansion of International Branch Campuses

The international expansion of higher education has intensified in recent decades with a rapidly growing number of international branch campuses appearing on the scene. This study investigates the economic, cultural and institutional, and educational determinants of transnational higher education on both the extensive margin (number of international branch campuses), and the intensive margin (the total number of educational programmes offered). Using the gravity equation, we applied fixed-effect empirical methods to a panel dataset that combined and extended the raw data from campuses and master's programmes in 33 source countries and 76 host countries in the period from 1948 to 2016. Estimates reveal that although cultural, economic and institutional ties foster cross-border educational relationships, their effect differs significantly from one margin to another. The study highlights the relevance of globalisation, research activities, and aggregate demand in international higher education

Foreign Direct Investment in oil-abundant countries: The role of institutions

The present work reassesses the impact of good governance and democracy on Foreign Direct Investment (FDI) in oil-abundant countries. To this end, we estimate the effect of host countries’ institutions on greenfield FDI, using a gravity equation for a dataset that covers 182 countries during 2003-2012. Our findings confirm that compliance to rule of law, lack of corruption, political stability and democracy could boost new FDI links through the extensive margin. Our results could not rule out the “oil curse”, meaning that oil producers attract fewer new greenfield projects than similar countries without oil. Unlike other studies, we show that the impact of institutions is not necessarily undermined by the presence of natural resources.This work was supported by: Consejería de Economía, Innovación, Ciencia y Empleo, Junta de Andalucía [SEJ 340], Forum Euromediterraneen des Instituts de Sciences Economiques [FEM41-07], Ministerio de Economía, Industria y Competitividad, Gobierno de España [ECO2015-68057-R]; and Generalitat Valenciana [GV/2017/052]

Forced migration and food crises

Existe una preocupación creciente por el aumento de la inseguridad alimentaria a escala global. Sin embargo, sus implicaciones económicas son poco conocidas. El presente artículo utiliza un modelo estructural de gravedad para cuantificar el efecto de las crisis alimentarias sobre los flujos de migrantes forzados internacionales (MFIs). Para ello, se emplea una base de datos que mide la severidad, la intensidad y las causas de las crisis alimentarias. Los resultados indican que incluso las crisis alimentarias menos severas tienden a incrementar los flujos de MFIs. Por su parte, las crisis alimentarias más severas tienden a impulsar en mayor medida los flujos de MFIs hacia países en desarrollo. Los resultados obtenidos indicarían que las crisis alimentarias aumentan las restricciones de liquidez sobre la migración, y que estas empeoran a medida que aumenta la intensidad de la crisis.There is growing concern about the increase in food insecurity across the world, but little is known of its economic implications. This paper quantifies the effect of food crises on forced international migration (FIM) flows using a structural gravity model. To this end, we use a database that measures the severity, intensity and causes of food crises. The results suggest that even less severe food crises tend to increase FIM flows. More severe food crises tend to skew FIM flows towards developing countries. The results obtained appear to indicate that food crises tighten liquidity constraints on migration and that these constraints worsen as the food crisis intensifies

Are energy market integrations a green light for FDI?

This paper studies the effect of energy market integration (EMI) on foreign direct investment (FDI). EMIs diminish energy uncertainty and price volatility in the host country and affect FDI through two channels: first, by harmonizing energy prices and, second, by reducing price dispersion. FDI may, as a result, increase both within and outside the EMI area, through energy stability mechanisms and price mechanisms, respectively. An empirical application on a global dataset including bilateral FDI data, during 2003-2012, using the gravity equation, shows that the integration of Portugal and Spain's electricity market in 2007 increased the amount of FDI's participants. Additionally, a positive increase in FDI from neighboring countries (in this instance, France), albeit lower in magnitude, is observed

Is energy market integration a green light for FDI?

This paper contributes to a better understanding of the effects of the European single market strategy by studying the effect of energy market integration (EMI) on foreign direct investment (FDI). Enforcing an EMI diminishes energy uncertainty and price volatility and signals stronger and credible institutions. FDI may, as a result, increase both within and outside the EMI area through two channels: first, via energy price converge and, second, via price dispersion reduction. We develop a formal model to explain how these mechanisms affect the capital invested abroad by heterogeneous firms. The Iberian Electricity Market (MIBEL) integration of 2007 is used to quantify the effect of EMI on FDI empirically. Gravity estimates on a global dataset including bilateral FDI data show that the integration of Portugal and Spain's electricity market increased both the amount of FDI's participants and the number of foreign projects. In line with our theoretical expectations, our estimates show that the increase of FDI is mainly due to the reduction in price dispersion. However, the institutional credibility signal sent by MIBEL had a greater influence than expected by the actual price reduction. Furthermore, we also observe a positive increase in FDI from neighboring countries (in this instance, France), albeit lower in magnitude