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Bright stars in the urban galaxy – the efficiency of ethnic entrepreneurs in the urban economy

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An issue of continuous debate over recent decades has been the impact of migration on the development of both destination and origin countries of migrants. Migration is a form of optimal allocation of production factors in both sending and receiving countries. In the sending countries some positive effects could be the economic growth attributed to the remittances and to the return migrants, who are regarded as engines of change and innovation. On the other hand, migration could be a cause of increasing disparities in origin and host countries. Some negative effects in the origin countries could be the amplification of consumerist, nonproductive and remittance-dependent behavior. The goal of this paper is to assess the importance of migration in the currently globalizing world, with special attention being paid to the entrepreneurial behavior and performance of immigrants. In line with the main purpose of this paper, we provide some theoretical insight into the impact of ethnic diversity on the economic performance of receiving and origin countries, this being further narrowed down to the entrepreneurial behavior of the migrants. The empirical part consists of a migrant impact analysis of ethnic entrepreneurs, and presents the results of a cross-correlation and Data Envelopment Analysis.

Keywords: GALAXY model; L 26; R 11; economic performance; ethnic diversity; migrant entrepreneurship

Document Type: Research Article


Affiliations: 1: Department of Regional Economics,VU University, Amsterdam, The Netherlands 2: Department of Civil and Environmental Engineering,Hokkai-Gakuen University, Chuo-ku Sapporo, Japan

Publication date: 2012-06-01

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