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...

How does immigration affect export performance? To answer this question we propose a unified empirical framework allowing to disentangle various mechanisms such as the role of networks in reducing bilateral transaction costs as well as productivity shifts arising from migration-induced knowledge...