Entrepreneurial Migration in an Integrated World

Spiros Bougheas, Rod Falvey

Research output: Contribution to journalArticleResearchpeer-review

Abstract

A growing number of developed countries offer entrepreneurial visas as a means of attracting entrepreneurial talent and capital. In this paper, we use a simple two-sector model of international trade with heterogeneous agents and financial frictions to show that entrepreneurial migration can contribute to the international efficiency of production, even when capital also flows internationally through borrowing and lending and foreign direct investment. In our model, all cross-border transactions are motivated by cross-country variations in the quality of financial institutions.

Original languageEnglish
Pages (from-to)1171-1201
Number of pages31
JournalScandinavian Journal of Economics
Volume120
Issue number4
DOIs
Publication statusPublished - 1 Oct 2018

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Integrated
Financial institutions
Borrowing
Capital flows
Financial frictions
Heterogeneous agents
International trade
Lending
Two-sector model
Developed countries
Foreign direct investment
Cross-border

Cite this

Bougheas, Spiros ; Falvey, Rod. / Entrepreneurial Migration in an Integrated World. In: Scandinavian Journal of Economics. 2018 ; Vol. 120, No. 4. pp. 1171-1201.
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Entrepreneurial Migration in an Integrated World. / Bougheas, Spiros; Falvey, Rod.

In: Scandinavian Journal of Economics, Vol. 120, No. 4, 01.10.2018, p. 1171-1201.

Research output: Contribution to journalArticleResearchpeer-review

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