Migration, ethnic concentration and firm entry: evidence from Italian regions

There is a growing body of literature highlighting the positive contributions of migration and diasporas to economic growth, innovation and productivity. One of the channels facilitating these effects is entrepreneurship. This paper provides novel empirical evidence concerning the link between migration and firm entry across Italian regions during the period 2004–14, and it explores the role of ethnic concentration in this context. The results show that the stock of foreign population is positively correlated with firm entry. Furthermore, this relationship varies across business sectors and firms’ legal status, and it benefits from the existence of local networks within diaspora communities in the host region.