Diaspora and economic perspective

Abstract

Diaspora members are migrants also inhabitants who contribute to the society in which they live in. It’s like a process that implies transforming the relationship between home countries and host countries. Diaspora members always try to establish a potential relationship between countries through their multiple networks, identities and share things of belonging. Though the knowledge about diaspora is still limited they play a crucial role in economic perspective. It’s really necessary to understand not only their motivations but also the modalities of the diaspora to facilitate the development is one of the most important matters. There is a strong connection between the diaspora and the financial market in developing and emerging economies. Sometimes it’s difficult to attract foreign investors due to perceptions of high risk, volatile currencies, also for asymmetric information.

In a border sense, diaspora may help to overcome this situation because of various perceptions of risk, informational advantages, and a bias toward home country capitalization. In economic perspective diaspora bonds, deposit account, remittance flows, transitional loans play a vital role in every sphere of development. A deposit account is conquered both in home and host countries. Another and most important part of a diaspora is the securitization of remittance flows. It allows banks to leverage remittance revenues for greater lending. Diaspora bonds permit the government to derive long term funds. There is also one kind of investment as a diaspora fund which assembles pools of individual investors for co-operative investments. Contributions of the diaspora to the home country beyond the standard monetary assistance. Ethnic and national identity make a difference between host countries and home countries.