We use social identity and agency logic to theorize and test hypotheses about how migrants’ different abilities and motivations tied to tenure abroad change the impact of their remittances on venture investment back home. Regression and related analyses of remittances to 33 developing countries from 2001–2010 indicate that, for migrants residing abroad for less (more) than a year, remittances significantly increase new business founding rates (venture-funding availability). Our results suggest that migrants’ tenure abroad shifts remittance-based venture investment activity in ways consistent with shifting importance in migrants’ dual social identities and their related entrepreneurial abilities and motivations. Shorter-term migrants identifying more with their home countries remit to found ventures that provide livelihoods upon their return. Longer-term migrants identifying more with their host countries remit to fund ventures from afar that provide individual financial returns and, perhaps, social returns derived from assisting home-country family members, local communities, and the broader homeland.
This seminar will take place from 16:00 to 17:15, in a room tba of the Amsterdam Law School, A building (of the Roeterseilandcampus). Drinks will follow.
One-to-one Meeting Request
Click here for a one-to-one meeting with Prof. Paul M. Vaaler on 26 March 2020.
About the speaker
Paul M. Vaaler is the Mooty Chair in Law & Business, a joint appointment of the University of Minnesota’s Law School and Carlson School of Management. From August 2019 to June 2020, he is living in South Africa and studying as a Fulbright Scholar. Paul teaches and writes on risk management by foreign investors active in developing countries.
About the ACLE
The Amsterdam Center for Law and Economics (ACLE) is a joint initiative of the Faculty of Economics and Business and the Faculty of Law at the University of Amsterdam (UvA). The objective of the ACLE is to promote high-quality interdisciplinary research at the intersection between law and economics.