Diaspora identity, acculturation policy and FDI: The Indian diaspora in Canada and the United States

Abstract

We use the Indian diaspora in Canada and the United States to explore the effect that host-country acculturation policies can have on the attitudes that immigrants hold toward the home and host countries, and how these attitudes can affect the flow of foreign direct investment (FDI) from host to home countries. Our results reveal that Indo-Canadians feel more at home in Canada than Indian-Americans do in the United States, and that they are less likely to invest in India. This indicates that attitudes toward both the home and host country are important factors affecting diaspora FDI, and that a host country’s acculturation mode significantly affects a diaspora’s attitude toward both the home and host countries.