The hub continent. Immigrant networks, emigrant diasporas and FDI

This paper studies the relations between bilateral FDIs and immigrant networks of France, Germany, UK, Italy and Spain, and the emigrant diasporas of Italy and Spain. It focuses on skilled and unskilled immigrants and on ties with developing and developed countries. Results evidence two different network models: FDIs of UK, Germany and France are prompted by the ties of skilled immigrants, while those of Italy and Spain are only influenced by their respective diasporas. The disparity may stem from history. Differently from the findings of previous literature, the effects of networks with developing countries are similar to those with rich economies.