Foreign Direct Investment and International Migration

Abstract

This study explores the impact of macro-level processes of the global economy on international migration. The authors utilize a cross-national panel regression analysis to examine the effect of foreign direct investment on the level of emigration from 25 less-developed countries between 1985 and 2000. The findings indicate that the stock of foreign direct investment increases net emigration over time, while trade integration lessens these movements. The level of economic development exerts no independent effect on out-migration once other factors are controlled. The results are discussed in the context of contemporary development and migration theories.