TY  - RPRT
        AU  - Bossavie, Laurent
AU  - Goerlach, Joseph-Simon
AU  - Özden, Çağlar
AU  - Wang, He
        TI  - Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh
        PY  - 2023/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16662
        UR  - https://www.iza.org/index.php/publications/dp16662
        AB  - 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.
        KW  - risky investment
KW  - credit constraints
KW  - temporary migration
KW  - entrepreneurship
        ER  -