Viewing migrant networks as an information transmission mechanism influencing investment is a natural extension of existing work trade in the absence of formal institutions. Drawing on Grief’s (1989, 1993) work on the Maghribi traders of the 11th century, Rauch and Trindade (2002) provide empirical evidence that the overseas Chinese help link buyers to sellers across national borders. Giving pride of place to migrant networks in explaining the cross-national distribution of capital allows us to speak to a number of seemingly disparate literatures. Broadly speaking, our emphasis on cross-national migrant networks as a conduit for capital flows.
