Title: The relation between migration and FDI in the OECD from a complex network perspective,
Abstract: We explore the relationship between human migration and OECD's foreign direct
investment (FDI) using a gravity equation enriched with variables that account
for complex-network effects. Based on a panel data analysis, we find a strong
positive correlation between the migration network and the FDI network, which
can be mostly explained by countries' economic/demographic sizes and
geographical distance. We highlight the existence of a stronger positive FDI
relationship in pairs of countries that are more central in the migration
network. Both intensive and extensive forms of centrality are FDI enhancing.
Illuminating this result, we show that bilateral FDI between any two countries
is further affected positively by the complex web of "third party"
corridors/migration stocks of the international migration network (IMN). Our
findings are consistent whether we consider bilateral FDI and bilateral
migration figures, or we focus on the outward FDI and the respective inward
migration of the OECD countries.