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Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh.

Many aspiring entrepreneurs in lower income countries face tight credit constraints.
  • Temporary international migration allows faster accumulation of the necessary capital.
  • Cost benefit analysis shows that it shares many features with classical investments.
  • Novel data from Bangladesh show frequent transitions into self-employment upon return.
  • Self-employment to a large extent is financed by savings acquired abroad.
  • Self-employment after return strongly increases the gains from temporary migration.