Business environment as a pull factor for migration from highly developed countries: The case of migrants from Sweden, Denmark, and Finland to Germany

Abstract

Research background: Migration from high-income countries has gained renewed attention as a significant phenomenon in the context of global labour markets and economic integration. While historical migration from the Nordic countries has been documented, the contemporary focus should shift toward understanding how modern business development factors in Germany act as pull elements. In particular, the quality of human capital and the enhanced probability of attracting highly skilled, entrepreneurial migrants from developed countries are critical aspects. Recognizing and enhancing the potential to gain high-quality migrants can contribute not only to Germany’s economic growth but also to a more balanced and sustainable migration process across high-income regions.

Purpose of the article: This paper aims to explain the migration flow from three high-income Nordic countries — Sweden, Denmark, and Finland — to Germany. The analysis specifically focuses on the influence of Germany’s business environment on attracting migrants with high-quality human capital and entrepreneurial potential.

Methods: We employ the gravity emigration model along with Fixed Effects (FE) and pooled Ordinary Least Square (OLS) estimation techniques, using data covering the period 1999–2018. This methodological framework enables us to quantify the impact of business development indicators on migration flows and to account for both economic and socio-demographic factors.

Findings & value added: Our results indicate that, despite Germany’s comparatively lower rankings in certain business indicators relative to its Nordic neighbors, its robust business development policies serve as a substantial pull factor for migrants from high-income EU member states. This finding underlines the importance of a well-developed business environment in attracting high-quality migrants. The paper contributes to the literature by highlighting that enhancing Germany’s business infrastructure and support mechanisms can further improve its capacity to attract talented and entrepreneurial individuals from highly developed countries — a priority for long-term sustainable economic growth and integration within the EU.

Keywords

migration, business development, business environment, entrepreneurship, self-employed migrants

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