While not dismissing the importance of institutions, we argue that investors are faced with tremendous asymmetries of information when considering alternative investment environments. Investors may not know about investment opportunities within various countries. Further, investors may not know the extent to which policy makers in particular countries are committed to protecting foreign investment. We argue that migrant networks-- connections between migrant communities in the investing country and the migrant’s country of origin--facilitate cross-border investment by decreasing information asymmetries
