Skip to main content
×
Home
    • Aa
    • Aa

Familiarity Breeds Investment: Diaspora Networks and International Investment

  • DAVID LEBLANG (a1)
Abstract

What explains cross-national patterns of international portfolio and foreign direct investment (FDI)? While existing explanations focus on the credibility of a policy maker's commitment, we emphasize the role of diaspora networks. We hypothesize that diaspora networks—connections between migrants residing in investing countries and their home country—influence global investment by reducing transaction and information costs. This hypothesis is tested using dyadic cross-sectional data for both portfolio and FDI. The findings indicate that even after controlling for a multitude of factors, disapora networks have both a substantively significant effect and a statistically significant effect on cross-border investment.

Copyright
Corresponding author
David Leblang is J. Wilson Newman Professor of Governance, Department of Politics, University of Virginia, P.O. Box 400787, Charlottesville, VA 22904 (leblang@virginia.edu).
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Gur Huberman . 2001. “Familiarity Breeds Investment.” Review of Financial Studies 14 (3): 659–80.

Organisation for Economic Co-operation and Development (OECD). 2006. OECD Migration Outlook 2006. Paris: OECD.

Jordan Siegel , Amir Licht , and Shalom Schwartz . 2008. “Egalitarianism and International Investment.” Harvard Business School. Manuscript.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

American Political Science Review
  • ISSN: 0003-0554
  • EISSN: 1537-5943
  • URL: /core/journals/american-political-science-review
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×
Type Description Title
UNKNOWN
Supplementary Materials

Leblang supplementary material
Data files

 Unknown (4.3 MB)
4.3 MB

Metrics

Full text views

Total number of HTML views: 13
Total number of PDF views: 121 *
Loading metrics...

Abstract views

Total abstract views: 413 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 29th March 2017. This data will be updated every 24 hours.