Inward FDI, remittances and out-migration

In this study, we look at the relationship between remittances received at home, inward Foreign Direct Investment (FDI) and out-migration of individuals with different levels of education. Using the bilateral international migration data in 1990 and 2000, we find that inward FDI tends to deter the out-migration of individuals with secondary and tertiary education, but has no significant impact on the out-migration of individuals with primary education. In addition, remittances received at home induce the out-migration of individuals with primary education, but not the out-migration of individuals with secondary and tertiary education. The stock of existing migrants in a foreign country encourage future out-migration regardless of migrants’ levels of education.