Where Enterprises Lead, People Follow? Links between Migration and German FDI

The aim of this paper is to analyze the interaction between different channels of integration empirically. More specifically, we use state-level German data to answer the question whether and how migration and FDI decisions and thus integration of labor and capital markets are linked. Our findings suggest that FDI and migration have similar determinants. Moreover, there is substantial evidence that factors cluster. http://topics.developmentgateway.org/businessenvironment/rc/filedownload.do?itemId=1085839