Arbeitspapier

Heterogeneous immigrants and foreign direct investment: The role of language skills

We investigate the interplay of language skills and immigrant stocks in determining bilateral FDI out-stocks of OECD reporting countries. Applying a Poisson panel estimator to 2004-2011 data, we find a robust positive effect of bilateral immigrants on bilateral FDI - provided that residents of the two countries have few language skills in common. We find a similar effect for immigrants from third countries that speak the language(s) of the FDI host country, making them potential substitutes for bilateral migrants. Our findings suggest that immigrants facilitate outgoing FDI through their language skills, rather than through other characteristics like cultural familiarity.

Language
Englisch

Bibliographic citation
Series: Kiel Working Paper ; No. 2009

Classification
Wirtschaft
International Investment; Long-term Capital Movements
International Migration
Industrialization; Manufacturing and Service Industries; Choice of Technology
Subject
migration
FDI
foreign languages
globalization

Event
Geistige Schöpfung
(who)
Lücke, Matthias
Stöhr, Tobias
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2015

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Lücke, Matthias
  • Stöhr, Tobias
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2015

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