Edited by Amelie F. Constant and Klaus F. Zimmermann
Chapter 27: Diaspora resources and policies
Migrants maintain connections with their families and with other people in their home country. These groups form what is called a diaspora. Spurred by the highly publicized role of the Indian diaspora in India’s technology boom, recent attention has shifted from analyzing the impact of skilled migration on sending country labor markets to a broader agenda that also considers the possible channels by which migrants might promote trade, investment and technological acquisition (see Chapter 1 in this volume for a discussion on economic assimilation). The recent socioeconomic literature on the role of diasporas argues that trade, technology diffusion and capital formation are facilitated by migrants. The argument is that migrants facilitate host and source country bilateral trade and investment because they help to overcome information asymmetries and other market imperfections. The potential contribution of the diaspora to their homeland’s development goes far beyond the personal remittances.
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