Large numbers of doctors, engineers, and other skilled workers from developing counties choose to move to other countries. Do their choices threaten development? The answer appears so obvious that their movement is most commonly known by the pejorative term “brain drain”. This paper...

In a global context foreign direct investment (FDI) and migration substitute one another in the matching process between workers and firms. However, as labor flows can lead to the formation of business networks, migration can actually facilitate FDI in the long-run. We first present a stylized...