%0 Report
        %A Bossavie, Laurent
%A Goerlach, Joseph-Simon
%A Özden, Çağlar
%A Wang, He
        %T Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh
        %D 2023
        %8 2023 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 16662
        %U https://www.iza.org/index.php/publications/dp16662
        %X This paper examines international temporary migration as an intermediary step among aspiring entrepreneurs to accumulate the needed capital when they face credit constraints at home. The analysis is based on a representative dataset of lifetime employment histories of return migrants from Bangladesh. After establishing the credit constraints that potential entrepreneurs face, the paper shows that non-agricultural self-employment rates are significantly higher among returning migrants – over half versus around 20% of non-migrants. Most migrants transition into self-employment by using their savings from abroad as the main source of financing. The paper then offers, for the first time, a detailed account of the financial costs and benefits of international migration. Our findings suggest that temporary migration can contribute to structural transformation of lower-income countries by enabling credit-constrained workers to enter into non-agricultural entrepreneurship.
        %K risky investment
%K credit constraints
%K temporary migration
%K entrepreneurship