In a global context foreign direct investment (FDI) and migration substitute one another in the matching process between workers and firms. However, as labor flows can lead to the formation of business networks, migration can actually facilitate FDI in the long-run. We first present a stylized...

In standard trade theory, migration and fdi substitute one another in the international reallocation of labour and capital. However, recent socio-economic literature suggests that migrants can both convey information on their home country (e.g., on business practices or the characteristics of...

In this paper, we model a developing economy in which individual decisions about education and migration are constrained by capital market imperfections (liquidity constraints). We examine the joint impact of brain drain and international remittances on human capital accumulation in the...