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Diaspora engagement institutions and venture investment activity in developing countries

Journal of International Business Policy volume 2, pages 289–313 (2019)Cite this article

Abstract

In response to recent trends in migration and remittances, many home-country governments have created new agencies that we call diaspora engagement institutions (DEI) intended to address migrant issues. In developing countries, DEI policies often direct migrant money and attention to funding and founding new businesses back home. In this paper, we ask whether and when those DEIs are effective. Grounding our explanation in social exchange and social identity theories, we propose that DEIs are more effective when they promote a stronger sense of home-country belonging and reciprocal giving among migrants. Using evidence from panel data analysis of 35 countries observed from 2001 to 2010, we find partial support for our predictions.

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Acknowledgments

This research (particularly the data-gathering effort) was supported by the Oxford Diasporas Programme funded by the Leverhulme Trust and a generous Carlson School of Management dissertation fellowship. We thank Harry Sapienza, Dan Forbes, and Paul Vaaler for guidance on this project and related work. We have also benefited from helpful comments at the 2013 International Association for Business and Society meeting and the 2016 Academy of Management Annual Meeting. All errors are ours.

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Authors and Affiliations

  1. Walton College of Business, University of Arkansas, WCOB 425, 1 University of Arkansas, Fayetteville, AR, 72703, USA

    Michael E. Cummings

  2. School of Social Sciences, Monash University, Room W815, 20 Chancellor’s Walk Clayton Campus, Melbourne, VIC, 3800, Australia

    Alan Gamlen

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  1. Michael E. Cummings
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Correspondence to Michael E. Cummings.

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Accepted by Paul Vaaler, Area Editor, 3 September 2019. This article has been with the authors for two revisions.

Appendix

Appendix

Appendix A Summary table of sampled countries, venture investment activity, and DEI status 2000–2010
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Cummings, M.E., Gamlen, A. Diaspora engagement institutions and venture investment activity in developing countries. J Int Bus Policy 2, 289–313 (2019). https://doi.org/10.1057/s42214-019-00035-8

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Keywords

  • migration
  • diaspora engagement
  • international relations
  • emerging markets
  • panel data analysis
  • social exchange theory