Migration and globalization: what’s in it for developing countries?

The purpose of this paper is to document the role of diaspora networks in enhancing cross-border flows of goods, capital, and knowledge, eventually contributing to efficient specialization, investment, and productivity growth in the migrants’ home-countries. Particular attention is paid to the role of skilled migrants, and to information imperfections reduction as the main channel for the documented effects.

This paper reviews a growing literature on migration and globalization, focussing on its relevance for developing and emerging economies.

In reviewing the literature on the effects of migration on other dimensions of international economic interactions, this paper shows that migrants contribute to the integration of their country into the world market, which can be particularly important for economic growth in developing countries.

It documents the role of diaspora networks in enhancing cross-border flows of goods, capital, and knowledge, eventually contributing to efficient specialization, investment, and productivity growth in the migrants’ home-countries. Particular attention is paid to the role of skilled migrants, and to information imperfections reduction as the main channel for the documented effects.