The effects of foreign direct investment on emigration: The roles of FDI source country, education, and gender

How do inflows of FDI into developing countries influence emigration to these same FDI source countries? FDI could raise wages and employment thereby reducing emigration but could also create information links that increase emigration. We examine to what extent FDI leads to emigration. When considering emigration to a particular developed country, we allow the effect of FDI from that country to differ from the effects of FDI from other countries. We find that FDI increases emigration but only to the FDI source country. FDI from other countries lowers emigration. We find little differences across education levels or gender.