Investing in the Homeland: Migration, Social Ties, and Foreign Firms

Once viewed as a “brain drain,” migrants are increasingly viewed as a resource for promoting economic development back in their home countries. In Investing in the Homeland, Benjamin Graham finds that diasporans—migrants and their descendants—play a critical role in linking foreign firms to social networks in developing countries, allowing firms to flourish even in challenging political environments most foreign investors shun.

Graham’s analysis draws on new data from face-to-face intervie...