2016/09/01 by Antonios Garas, ANTONIOS GARAS, Athanasios Lapatinas +3
Business, Management and Accounting · Economics, Econometrics and Finance · Physics and Astronomy · Social Sciences · #Centrality #Foreign direct investment #Global trade and economics #Gravity equation #Gravity model of trade #International Business and FDI #Investment (military) #Migration and Labor Dynamics #Panel data #Perspective (graphical) #Relation (database) #physics.soc-ph
paper · pdf · doi:10.1142/s0219525916500090
published as Advs. Complex Syst. 19, 1650009 (2016) · 26 pages, 3 figures, 4 tables
openalex publication_date 2016/09/01 · openalex created_date 2016/11/30 · arxiv created 2017/01/26 · arxiv updated 2017/01/27 · openalex updated_date 2026/08/05
We explore the relationship between human migration and OECD’s foreign direct investment (FDI) using a gravity equation enriched with variables that account for complex-network effects. Based on a panel data analysis, we find a strong positive correlation between the migration network and the FDI network, which can be mostly explained by countries’ economic/demographic sizes and geographical distance. We highlight the existence of a stronger positive FDI relationship in pairs of countries that are more central in the migration network. Both intensive and extensive forms of centrality are FDI enhancing. Illuminating this result, we show that bilateral FDI between any two countries is further affected positively by the complex web of ‘third party’ corridors/migration stocks of the international migration network (IMN). Our findings are consistent whether we consider bilateral FDI and bilateral migration figures, or we focus on the outward FDI and the respective inward migration of the OECD countries.