Diaspora and International Business in the Homeland: From Impact of Remittances to Determinants of Entrepreneurship and Research Agenda

Abstract

Migrations and international business have always been part of human history for many centuries. Migrations have continued today for various reasons including wars, but most importantly poverty. However, with the changing nature of the global economy and the development of technologies, the migration and international business has allowed a new category of migrants characterized by their socio-cultural embeddedness and engagement in at least two environments. Although this phenomenon called “brain drain” can be very bad for developing countries, as it stifles the effort of economic development of these countries by empting them of their skilled workforce and intellectual elites, it can also have a positive impact on the economies of developing countries and achieve what has been called “brain gain”. Although previous studies have helped for a better understanding of diaspora impact on home country in the areas such as poverty alleviation through remittances, entrepreneurship, and institutional transformation and innovation, several important issues related to diaspora still need the attention of researchers. The purpose of this research is to address some of these issues. So the research analyzes the determinants and challenges of diaspora entrepreneurship, the relevance and the limits of the concept of liability of foreignness in diaspora entrepreneurship. It also discusses the particularities of the performance of diaspora entrepreneurs and limits of the existing international business theories to explain diaspora entrepreneurship.