Many Indian and Chinese migrants, after becoming successful entrepreneurs abroad, return and set up businesses back home. This reverse migration helps bring ideas and capital from abroad and boosts growth. Yet, not all countries provide a conducive environment to make this possible. For instance, a study finds that China is more welcoming to returning entrepreneurs than India. The study, by David Zweig of the Hong Kong University of Science and Technology and his co-authors, is based on a 2004 survey of Chinese entrepreneurs and a 2016-17 survey of Indian entrepreneurs. The surveys are 12 years apart because that is also the time lag between the start of liberalization in the two countries. Analyzing countries at similar points in their development allows for a fairer comparison.
Indian returnees complained about the central government doing little to resolve their problems, but the Chinese government appears to be more active. Around 35% of Chinese respondents said that government policies such as startup funds for new firms, zero taxes for up to three years and assistance for spouses to find jobs played an important role in their return.
Courtesyg: Google (photo)
