Return migration and the survival of entrepreneurial activities in Egypt

Type Journal Article - World Development
Title Return migration and the survival of entrepreneurial activities in Egypt
Author(s)
Volume 40
Issue 10
Publication (Day/Month/Year) 2012
Page numbers 1999-2013
URL http://cadmus.eui.eu/bitstream/handle/1814/15415/RSCAS_2011_01.pdf?...1
Abstract
The literature shows that temporary international migrants have a high propensity to opt for an
entrepreneurial activity upon return, but the prospects of survival of these activities have not been
explored. We address this research question using longitudinal Egyptian data. We find that
entrepreneurs' migration experience significantly improves the chances of survival of their
entrepreneurial activities, adopting econometric techniques that control for return migrants' non-random
selection in unobservables. We resort to a bivariate probit model and a two-stage residual inclusion
estimator, using the rate of population growth and the real oil price as alternative instruments for
migration.

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