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Refugees, trade, and FDI.

Dany Bahar1, Christopher Parsons2, Pierre-Louis Vézina3

  • 1Brown University, USA.

Oxford Review of Economic Policy
|July 14, 2023
PubMed
Summary

Refugees create unique trade and investment links between their new homes and countries of origin. Policies engaging refugee diasporas can foster development and economic growth in their homelands.

Area of Science:

  • Economics
  • Sociology
  • Political Science

Background:

  • Humanitarian policies for forced migrants can have unforeseen economic benefits.
  • Refugees establish distinct trade and investment connections between resettlement countries and their homelands.

Purpose of the Study:

  • To analyze the specific trade and investment links formed by refugees.
  • To understand the unique challenges refugees face in establishing economic connections due to conflict and unrest.
  • To explore policy implications for leveraging refugee diasporas for development.

Main Methods:

  • Qualitative analysis of refugee-driven economic linkages.
  • Examination of factors influencing refugee opportunity sets.
  • Case studies on economic connections amidst civil conflict.
Keywords:
F14F21F22F66FDIdiasporasinternational migrationinvestmentmigrant networksrefugeestrade

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Main Results:

  • Refugee-facilitated trade and investment differ from other immigrant groups.
  • Civil conflict and political instability create significant barriers to economic connections.
  • Refugee diasporas represent a potential resource for homeland development.

Conclusions:

  • Engaging refugee diasporas is crucial for fostering development in countries of origin.
  • Policy interventions can facilitate and enhance refugee-led economic initiatives.
  • Understanding the unique context of forced migration is key to unlocking economic potential.