Arbeitspapier

Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh

This paper examines international temporary migration as an intermediary step among aspiring entrepreneurs to accumulate the needed capital when they face credit constraints at home. The analysis is based on a representative dataset of lifetime employment histories of return migrants from Bangladesh. After establishing the credit constraints that potential entrepreneurs face, the paper shows that non-agricultural self-employment rates are significantly higher among returning migrants over half versus around 20% of non-migrants. Most migrants transition into self-employment by using their savings from abroad as the main source of financing. The paper then offers, for the first time, a detailed account of the financial costs and benefits of international migration. Our findings suggest that temporary migration can contribute to the structural transformation of lower-income countries by enabling credit-constrained workers to enter into non-agricultural entrepreneurship.

Language
Englisch

Bibliographic citation
Series: CReAM Discussion Paper Series ; No. 18/23

Classification
Wirtschaft
Subject
Temporary migration
credit constraints
risky investment
entrepreneurship

Event
Geistige Schöpfung
(who)
Bossavie, Laurent
Goerlach, Joseph-Simon
Ozden, Caglar
Wang, He
Event
Veröffentlichung
(who)
Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London
(where)
London
(when)
2023

Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bossavie, Laurent
  • Goerlach, Joseph-Simon
  • Ozden, Caglar
  • Wang, He
  • Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London

Time of origin

  • 2023

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