Salvadoran economic transnationalism: embedded strategies for household maintenance, immigrant incorporation, and entrepreneurial expansion

Abstract

This article presents a case study of the transnational economic practices linking two Salvadoran settlements in the United States and El Salvador. It considers the relationship between economic transnationalism, immigrant settlement and economic development in the country of origin. Four processes are examined including: (1) the creation of border‐spanning social networks by migrants and their home country counterparts; (2) the construction of transnational economic activities and institutions; (3) the broader transnational social formations in which these are embedded; and, (4) the cumulative and unintended consequences of economic transnationalism for migrant households, the immigrant community, and El Salvador. The article applies the concepts of social network, social capital, and embeddedness, to explain the sources and determinants of individual‐ and community‐level variation in types of transnational economic practices. The conclusions drawn are that economic transnationalism is both part of a transnational settlement strategy and holds potential for economic development in the country of origin.