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A Literature Review of the Nexus between Migration and Internationalization

Abstract

Protectionism and anti-globalization tides have been rising already before the COVID-19 pandemic, with Brexit and the China-U.S. trade war, as two examples. A continued disruption to global trade, investment and value chains could worsen global development. Economic recovery will require restoring firms’ ability to trade, offshore and invest globally. To achieve this, it will be useful to understand the role of migration for foreign trade, investment and other aspects of internationalization. In this paper we review and discuss over 100 papers published about migrants’ roles on international trade, foreign direct investment and offshoring. Although the evidence suggests that migration facilitates trade and internationalization, we also note substantial gaps and inconsistencies in the existing literature. The aim of this paper is to encourage further research and assist policymakers in their efforts to promote economic recovery including internationalization.

Hatzigeorgiou, A. & Lodefalk, M. (2021). A Literature Review of the Nexus between Migration and Internationalization. Journal of International Trade & Economic Development, 30(3), 319-340.

Details

Author: Hatzigeorgiou, A. & Lodefalk, M.
Publication year: 2021
Published in: Journal of International Trade & Economic Development

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Associate Professor
Magnus Lodefalk
magnus.lodefalk@oru.se

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Article (with peer review)

Home Sweet Home: Returns to Returning in the Age of Mass Migration

Ejermo, O., Enflo, K., Eriksson, B., & Prawitz, E.

Publication year

2025

Published in

American Economic Journal: Applied Economics, 17(4)

Abstract

Despite significant circular migration flows historically and today, their economic impacts remain understudied. Using data on predominantly rural Swedish migrants who returned from the United States during the Age of Mass Migration, we estimate returns to temporary migration in terms of wealth, income, demographic, and social outcomes. We find substantial wealth effects but limited evidence of increased labor income or occupational upgrading. Male returnees held nearly double the wealth of stayers, likely due to overseas savings, while female returnees gained wealth mainly through marriage. These findings highlight the need to consider wealth when evaluating the economic returns of temporary migration.

Link to the article.

Working Paper no. 328 Wholesale firms: A catalyst for Swedish exports?

Daunfeldt, S-O., Engberg, E., Halvarsson, D., Kokko, A. & Tingvall, P.

Publication year

2019

Published in

Ratio Working Paper

Abstract

This paper examines the role of wholesale firms as facilitators of exports for small and medium-sized Swedish businesses. Our findings suggest that wholesale firms do facilitate access to difficult markets located outside Europe. For exports of a particular good to a given market, we observe a positive correlation between the export volumes of wholesale and manufacturing firms. Finally, we present evidence that supports a prediction from recent trade models with differentiated firms, namely that wholesale firms can facilitate exports for firms that are not themselves capable of direct exports.

Scandinavia: Refugees at work

Publication year

2019

Published in

Abstract

Germany was the top destination country by far for refugees arriving in the years between 2014 and 2017. But much-smaller Sweden received more asylum applications in relation to its population. The other two Scandinavian countries – Norway and Denmark – also saw significant numbers of asylum seekers in relation to their small populations. Since then, Scandinavian countries have turned to the sizable task of integrating new arrivals into the labour market. Refugees have struggled to find work in the Scandinavian countries. Figure 1 shows the employment rate (per cent) among adult refugees in Sweden, Denmark and Norway by years after arrival in the host country. As shown in Figure 1 only between 20 and 35 per cent of male refugees are working two years after arrival. The share in work increases with each year after arrival but employment generally plateaus after ten to fifteen years, significantly below the employment rate among the overall population. Female refugees need more time than males to find work. They usually have less schooling than their male counterparts and often bear children after arrival.48 Employment among female refugees picks up after some time though.

Refugees have long faced several barriers to finding work in Scandinavia, including lower average levels of education than the domestic workforce, lack of host-country language skills, a limited professional network and discrimination.49 These challenges, combined with the large number of arrivals in 2015–16, increased the willingness of Scandinavian governments to promote faster tracks to employment. In Denmark large reforms of integration policies were introduced in 2016. This led to substantial improvements in labour market outcomes.