Laura Magazzini, Chiara Piccardo, Angelo Zago (p)

Anna D'ambrosio

See extended abstract

Luigi Benfratelo, Anna D'ambrosio (p), Carmelo Petraglia, Gaetano Vecchione

Angelo Zago

This paper investigates the link between historical emigration (between the end of the 19th and the beginning of the 20th century) and inward and outward FDI of Italian regions. We study whether the findings of a sizeable literature on contemporary migration-trade link can be extended to a longer-run perspective. We employ a set of hybrid panel models, that allow us to study the effects of past migration while controlling for dyadic heterogeneity. Preliminary results indicate that, at an aggregate level, the effects of historical migration do not seem to affect FDI. However, behind this result lies significant heterogeneity. Indeed, historical migration pre-dating world war I appears to positively and significantly affect FDI, especially outward FDI. Instead, migration in later, post-war years negatively and significantly correlates with FDI, suggesting that brain drain effects are at play.