Refugees, Trade, and FDI

Abstract

Humanitarian policies aimed at welcoming forced migrants may yield unexpected economic dividends. This article focuses on the trade and investment links forged by refugees between their countries of resettlement and the origins they fled. We document how such immigrant-links differ in the case of refugees, focusing on why their opportunity sets might differ and the difficulties in establishing economic connections against a backdrop of civil conflict and political unrest. We conclude by discussing a range of policies aimed at engaging refugee diasporas to foster development at refugees’ origins.

JEL Classifications

F14 - Empirical Studies of Trade; F21 - International Investment, Long-Term Capital Movements; F22 - International Migration; F66 - Labor