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NOVEMBER 2013
Employing Skilled ExpatriatesBenchmarking skilled immigration regimes across economies
DIETER DE SMET
A product of the FDI Regulations database
Global Indicators Group
Development Economics
The World Bank Group
THE WORLD BANK GROUP – NOVEMBER 20132
Overview and main results
The Employing Skilled Expatriates indicators analyze the skilled
immigration regime relevant for Foreign Direct Investment across
93 economies to provide comparable information about this
regulatory space. The indicators focus on restrictions which control
the inflow of skilled immigrants (quotas); the ease of hiring skilled
expatriates (time and procedural steps to obtain a temporary
work permit, existence of online application systems, availability
of a one-stop shop and fast-tracking option); and the existence
of a path to permanent residency and citizenship as well as the
existence of spousal work permits. As governments increasingly
seek to attract foreign direct investment as a driver of long-term
development, reforming the investment climate—including the
skilled immigration regime—is one policy option to consider. Our
analysis shows a positive correlation between the Employing
Skilled Expatriates index and foreign direct investment inflows.
As measured by the Employing Skilled Expatriates index, there is
room for economies with a need for skilled workers to improve
their immigration regimes as one means of attracting more foreign
direct investment. In Singapore and the Republic of Korea, it only
takes 10 days on average to obtain a temporary work permit.
In Honduras, the same process can take up to 22 weeks. The
global average to obtain a temporary work permit is 8 weeks. The
process is the fastest in the East Asia and the Pacific region where
it takes 5 weeks. With 11 weeks, the processing time in the Middle
East and North Africa region is the slowest.
EMPLOYING SKILLED EXPATRIATES 3
Acknowledgments
Employing Skilled Expatriates (ESE) is part of the FDI Regulations
database of the Global Indicators Group of the World Bank Group
(WBG). The lead author, Dieter De Smet, is a Private Sector
Development Specialist working in the Global Indicators Group.
The author is grateful for valuable peer review comments received
from World Bank Group colleagues Pierre Guislain, Christine
Qiang, Roberto Echandi, Peter Kusek, Harald Jedlicka, David
Robalino, Arvo Kuddo and Dilip Ratha. External peer reviewers in-
clude Julia Onslow-Cole and James Perrott at the global immigra-
tion network of PwC Legal LLP, Ayelet Shachar, at the University of
Toronto Faculty of Law, and Madeleine Sumption, at the Migration
Policy Institute in Washington, D.C. Additional valuable comments
were received on earlier drafts of the paper from Carolin Geginat,
Melissa Johns, Augusto Lopez-Claros, Tanya Primiani, Federica
Saliola, and Hulya Ulku from the Global Indicators Group.
Two groups of people provided pro-bono contributions to ESE
without which the data and indicators could not have been
gathered and developed.
The first is the group of lawyers and government regulators in
each of the 93 economies covered by the report who responded
to the ESE legal questionnaire. Their input about the skilled im-
migration regime in their economy was the fundamental source of
data for the analysis. Grateful acknowledgment of these contribu-
tors is made in the Contributors section at the end of this report.
Additional details about the contributors across all topics of the FDI
Regulations database are provided at http://iab.worldbank.org/
Local-Partners/2012. Particular acknowledgment is made to the
Global Immigration Network of PwC Legal, which responded to
questionnaires in more than 60 economies.
The second is the expert consultative group formed to provide
technical input to the development of the ESE topic. This group of
global immigration experts provided input on the focus of the ESE
legal questionnaire and on the methodology to develop the ESE
indicators. Members of the expert consultative group include:
Dr. Lucie Cerna, Assistant Professor in Global Challenges,
Leiden University, Netherlands and Research Associate at the
Centre on Migration, Policy and Society (COMPAS), Oxford.
John Craig, Partner, Heenan Blaikie Law Firm, Canada.
Harald Jedlicka, Investment Policy Officer, WBG Investment
Climate, Vienna, Austria.
Graeme Kirk, Senior Partner, Gross & Co. Law Firm,
Washington DC.
Khalid Koser, Deputy Director and Academic Dean at the
Geneva Centre for Security Policy, Switzerland.
Susan Martin, Herzberg Professor of International Migration
Director, Institute for the Study of International Migration,
Georgetown University, Washington DC.
Julia Onslow-Cole, Partner and head of global immigration
network of PwC Legal LLP.
Linda Rahal, Partner, Trow & Rahal Immigration Law Firm.
Ted Ruthizer, Partner and Co-Chair of the Business
Immigration group of Law Firm Kramer Levin, New York.
Ayelet Shachar, Professor of Law, Political Science &
Global Affairs, Canada Research Chair in Citizenship and
Multiculturalism, University of Toronto Faculty of Law, Canada.
Elizabeth Stern, managing partner and head of the Global
Immigration & Mobility Practice Group, Baker & McKenzie,
Washington DC.
Madeleine Sumption, Senior Policy Analyst, Migration Policy
Institute, Washington DC.
Hong Tran, Partner Mayer Brown, Hong Kong SAR, China.
The content of this report was previously published as: De Smet, Dieter. 2013. "Employing skilled expatriates: benchmarking skilled
immigration regimes across economies." World Bank Policy Research Working Paper no. 6708
THE WORLD BANK GROUP – NOVEMBER 20134
1. Introduction
In Honduras, the average time taken to obtain a Temporary Work
Permit (TWP) for an Information Technology (IT) specialist is 22
weeks. The hiring company is required to submit an application to
the Work Secretariat to obtain a certificate of compliance with the
quota requirements. It is then required to apply, on behalf of the
applicant, for a special stay permit to the Director of Immigration
and Foreign Affairs. Upon receipt of the special stay permit, the
skilled expatriate must register him/herself in the National Foreign
Register and then submit an application to obtain the TWP before
the Work and Social Security Office of the Department of State.
This is followed by an official visit to the company by the migration
officers from the Department of State to verify compliance with
the quota requirements. The Department of State then reviews
the application and grants the TWP.
In Singapore, in contrast, the same process takes 10 days on
average. The hiring company applies for an Employment Pass at
the Ministry of Manpower, which issues an in-principle approval
letter. Upon entering Singapore, the skilled expatriate is required to
follow the instructions stated in the in-principle approval letter
(for example, to comply with a medical check-up) and upon
compliance, the employment pass is issued.
The Employing Skilled Expatriates indicators (ESE indicators)
analyze the skilled immigration regime relevant for Foreign Direct
Investment (FDI) across 93 economies and aims at providing
comparable information about this regulatory space. As govern-
ments increasingly seek to attract FDI as a driver of long-term
development, reforming the investment climate—including the
skilled immigration regime—is one policy option to consider.
2. Why does skilled migration matter for foreign investors?
The ease of hiring skilled expatriates is one of the factors which
are taken into consideration in the location decision of multination-
als. When the required expertise cannot be sourced in the hosting
country, skilled immigrants are necessary to start-up new subsidiar-
ies and train workers. In other cases, a company may need to
deploy a skilled immigrant with specific expertise from within the
corporate group. In the latter scenario, companies frequently resort
to the intra-company transfer scheme under Mode 4 of the World
Trade Organization’s General Agreement on Trade in Services
(GATS) which allows companies to temporarily transfer employees
from one member country to another. For this paper, we have
opted to exclude GATS or any other multilateral or bilateral treaties,
in order to improve comparability of skilled immigration regimes
across 93 economies. Differences in the various multilateral and
bilateral agreements with regard to definitions of skilled expatri-
ates and prerequisites related to nationality and recognition of
credentials would have prevented transparent comparisons across
economies.
Overly restrictive or cumbersome skilled immigration regimes may
result in lengthy work permit processing times which potentially
imply stalled productivity or loss of strategic or first-mover
advantage for companies. Other restrictions (for example, quotas)
may impact the viability of new ventures and may lead companies
to invest in economies with less restrictive skilled immigration
policies. A recent research paper provides evidence that a less
restrictive skilled immigration regime is conducive in attracting FDI
(Medina 2012). Our paper builds further on this premise.
In 2012, under the supervision of Michael Porter, the Harvard
Business School conducted an in-depth survey with 10,000
Harvard alumni in senior leadership positions to identify the roots
of the competitiveness problem in the United States (Porter and
Rivkin 2012). Better access to skilled labor was stated as the third
main reason for moving existing activities out of the United States,
behind lower wages and proximity to customers. Immigration
policies, next to taxation, were identified as the main impediment
to investing and creating jobs in the United States. In a 2010
report, the McKinsey Global Institute concluded that “limits on
the immigration of skilled workers handicap US companies when
competing abroad and in some cases discourage investment at
home” (Cummings et al. 2010). As such, economies which have
smart and fast immigration regimes for skilled expatriates have a
competitive advantage in attracting FDI.
There is a consensus among experts that international migration
can positively contribute to global economic growth and develop-
ment. The impact of skilled expatriates on hosting, predominantly
developed, economies is already well acknowledged by most
economies: skilled immigrants enhance hosting economies’
productivity and competitiveness and significantly contribute to
their GDP (World Economic Forum 2010).
Opponents of skilled migration refer to the consequences of the
human capital flight for sending (typically developing) economies.
When highly skilled migrants leave to pursue more lucrative oppor-
tunities in developed economies, their departure creates a number
of externalities. The first is loss of net contribution to the govern-
ment budget, increasing the fiscal burden on those left behind.
The second is the negative effect of human capital depletion on a
country’s growth prospects due to decreased human capital forma-
tion which is a central engine for growth. In this view, developing
economies should create incentives for skilled workers to return to
their home country. Finally, the fact that skilled labor is instrumental
EMPLOYING SKILLED EXPATRIATES 5
in attracting FDI and fostering research and development expendi-
tures is contributing to the concentration of economic activities in
specific locations, at the expense of origin economies. A summary
of the possible effects of this type of migration on sending and
receiving economies is shown in Figure 1.
While these traditional negative effects of the brain drain were
stressed in the early literature, more recent contributions ask
whether these may be offset by possible beneficial effects arising
from remittances (Adams 2003), return migration (Mayr and Peri
2008), the creation of trade and business networks (Aleksynska
and Peri 2012), and possible incentives of migration prospects on
human capital formation at home (Docquier and Rapoport 2004).
With regard to the positive effects of the diaspora externality on
FDI, a recent study (Kugler and Rapoport 2011) found that the
presence of migrants in the host country may also facilitate the
formation of the types of business links which lead to FDI project
deployment in the skilled immigrant’s home country (sending
country).
An important barrier to a multinational corporation’s viability to
set up a subsidiary in a developing country can be uncertainty,
especially the type of uncertainty linked to low institutional quality
(Kugler 2011). To the extent that migrants integrate into the
business community, a network can emerge whereby migrants
liaise between potential investors and partners (both private and
public) in various aspects of setting up a production facility in the
migrant’s country of origin. In other words, networks of (skilled)
migrants can also be important sources of FDI and know-how,
both of which promote productivity growth in sending economies.
Figure 1 summarizes possible positives and negatives for sending
and receiving economies with regard to skilled migration as well as
possible global effects.
Nevertheless, governments may have policy goals beyond attract-
ing FDI that justify, in their view, certain restrictions on skilled mi-
gration. As such, a broader policy debate needs to be considered
when evaluating restrictions on skilled migration. We acknowledge
the fact that this paper measures two different issues: temporary
entry of skilled expatriates who intend to seek permanent im-
migration and temporary entry of skilled expatriates who do not
intend to seek permanent immigration. While the former is a social
and highly sensitive political issue, and is predominantly a South-
North phenomenon, temporary entry of skilled personnel is clearly
an FDI issue which does not necessarily entail a South-North flow
of skilled expatriates.
FIGURE 1: Possible global and national effects of high-skilled international migration
SENDING ECONOMIES: POSSIBLE NEGATIVES· “Brain drain”: lost productive capacity due to at least temporary absence of higher skilled workers and students
· Less support for public funds for higher education
RECEIVING ECONOMIES: POSSIBLE NEGATIVES· Decreased incentive of natives to seek higher skills
· May crowd out native students from best schools
· Language and cultural barriers between native and immigrant high-skilled workers
· Technology transfers to possibly hostile economies
SENDING ECONOMIES: POSSIBLE POSITIVES· Increased incentive for natives to seek higher skills
· Possibility of exporting skills reduces risk/raises expected return of personal education investments
· May increase domestic economic return to skills
· Knowledge flows and collaboration
· Increased ties to foreign research institutions
· Export opportunities for technology
· Return of natives with foreign education and human capital
· Remittances and other support from diaspora networks
RECEIVING ECONOMIES: POSSIBLE POSITIVES· Increased R&D and economic activity due to availability of additional high-skilled workers
· Knowledge flows and collaboration
· Increased ties to foreign research institutions
· Export opportunities for technology
· Increased enrolment in graduate programs/keeping smaller programs alive
POSSIBLE GLOBAL EFFECTS· Better international flow of knowledge
· Better job matches
· Greater employment options for workers/researchers
· Greater ability of employers to find rare/unique skill sets
· Formation of international research/technology clusters (Silicon Valley, CERN)
· International competition for scarce human capital may have net positive effect on incentives for individual human capital investments
Source: Regets, 2001.
THE WORLD BANK GROUP – NOVEMBER 20136
3. What do the ESE indicators measure?
Focus of the ESE indicatorsThe ESE indicators analyze important areas which companies, but
also skilled individuals, take into account in their investment
location decision. Figure 2 shows the first order (drivers) and
second order (facilitators) variables which a highly skilled individual
takes into account when deciding about where to emigrate. The
ESE indicators measure the elements of the total immigration
package: the applicable immigration rules, paths to permanent
residency and citizenship and the opportunities for family
members. As such, the ESE indicators aim to analyze important
areas within the skilled immigration regime of an economy which
also include issues which influence the decision-making pattern of
the skilled expatriate him/herself.
More specifically, the ESE indicators cover:
1. Quotas which control the inflow of skilled immigrants
2. The ease of hiring skilled expatriates: Measures the time
and procedural steps required to obtain a TWP, whether the
TWP can be applied for online, and whether a one-stop shop
and a fast-tracking option are available.
3. Restrictions on permanent residency / citizenship and Spousal Work Permit: Measures the attractiveness of an
economy to the skilled immigrant in terms of being able
to obtain a permanent residency and/or citizenship on the
basis of temporary employment, and the ability to obtain a
work permit for a spouse based on employment of the other
spouse (Spousal Work Permit).
The ESE indicators also include nationality or residency limita-
tions imposed by economies on the composition of the board
of directors. The aim of such limitations is usually to achieve
different policy objectives: nationality limitations influence control
over the investment and usually are related to national security
or political considerations. Residency requirements are associated
with the interest of the host state of having at least one physical
person representing the legal entity in case of any wrongdoings.
As a result the indicators are not included in the index, but Annex
II provides an overview of conditions imposed on the composition
of the board of directors in the surveyed economies.
How the data was gatheredThe data was gathered through a questionnaire which was
filled out by lawyers specialized in immigration and/or labor
law, as well as government officials (from a country’s Board of
Investment, Labor or other Ministries, and Investment Promotion
Agencies). To make the data comparable across economies,
several assumptions are made about the parent company, the
business and the skilled expatriate.
Data was gathered about the laws and practices that would affect
a locally registered subsidiary of a multinational firm when hiring
a skilled expatriate. The subsidiary has a start-up capital of $10
million and does not operate in a special economic zone. The
company is looking to hire a foreign worker (skilled expatriate).
The skilled expatriate is an Information Technology (IT) special-
ist who is 35 years old, male, holder of a Master’s degree of
Science, and will not hold an executive or managerial position.
It is important to note that labor mobility regimes under bilateral
or multilateral trade agreements (for example, the intra-company
transfer regime) are excluded. In many economies, temporary
licensing by professional associations may present an additional
hurdle for skilled expatriates. For this paper we selected one
particular category of skilled expatriates (IT specialists) which
normally is not subject to local certification requirements. This
approach allows for streamlined comparison across the surveyed
economies. We nevertheless acknowledge that, depending on the
economy, specific survey results may not be fully applicable to
other categories of skilled immigrants.
FIGURE 2. A highly-skilled individual decision making calculus about where to emigrate
Source: Papademetriou et al. 2008.
Choice of destination
OpportunityGetting the best
returns on one’s own human-capital investments
Capital infrastructureResearch labs, personal
and professional growth opportunities,
dynamic and transformative environment
Presence of critial masses of other
talented professionalsSynergistic work
environments, potential for virtuous circles of
innovation and success
Fair and generous social model
Lifestyle and environmental
factors
Tolerant and safe society
Total immigration package Clear, fair, and transparently
applied immigration rules
Reasonable paths to permanent residency/citizenship
Recognition of foreign credentials
Opportunities for family members
Drivers(first ordervariables)
Facilitators(secondordervariables)
EMPLOYING SKILLED EXPATRIATES 7
The aim of the indicatorsThis paper does not take a position on an ideal skilled immigration
model for the surveyed economies. Each economy is unique and
there is no global all-inclusive best practices model which can
or should be implemented. Improved skilled migration policies
need to be tailor-made for each economy. In this paper we focus
on a number of issues which are common to most of the skilled
immigration regimes without taking a position on whether reforms
at this stage would be advisable or how reforms should be
sequenced.
The goal of this paper is to contribute to the literature on FDI
which, for the most part, leaves aside migration considerations. We
do this by mapping how long it takes to obtain a TWP, identifying
bottlenecks which limit the inflow of skilled expatriates or decrease
the attractiveness of an economy to a skilled expatriate, while at
the same time discussing best practices with regard to common
characteristics of skilled immigration regimes across the surveyed
economies.
A number of data points were used to create an ESE index which
is used to find correlations with FDI flows in order to answer the
question of whether skilled immigration regimes affect FDI. The
ESE index is also correlated to external existing data from the
Global Migration Barometer (Economist Intelligence Unit 2008)
to determine whether economies with a need to attract migrants
(to spur economic growth) have in effect put appropriate skilled
immigration regimes in place.
4. Results
Restrictions which control the inflow of skilled immigrants
Immigration Quotas
Quotas are limits on immigrants that cap the number of people
who are allowed to move into a country during a specified period.
Quotas therefore function as a funnel and impact foreign investors
who seek to bring in skilled staff to start up a company.
Quotas can be nationwide, but can also be on a company-basis
or even per industry sector. Forty of the 93 surveyed economies
(or 43%) have quotas which restrict the inflow of immigrants
and therefore impact all categories of skilled expatriates which are
employed.
Figure 3 provides an overview of the applicability of immigration
quotas to the surveyed economies. Figure 4 provides examples of
quotas in surveyed economies.
FIGURE 3. Applicability of immigration quotas to surveyed economies
Non-quota economies Quota economies
Afghanistan; Albania; Argentina; Armenia; Australia; Austria; Belarus; Bosnia and Herzegovina; Bulgaria; Burundi; Cambodia; Cameroon; Canada; Chad; Colombia; Costa Rica; Côte d’Ivoire; Croatia; the Czech Republic; Ethiopia; France; Georgia; Germany; Greece; Hong Kong SAR, China; Japan; Jordan; Kenya; Madagascar; Malaysia; Mauritius; Morocco; Nepal; the Netherlands; New Zealand; Pakistan; the Philippines; Poland; the Republic of Korea; the Russian Federation; Rwanda; Senegal; Serbia; Singapore; the Slovak Republic; South Africa; Spain; Sri Lanka; Taiwan, China; Tunisia; Turkey; Uganda; Ukraine; Vietnam; Zambia.
Algeria; Angola; Azerbaijan; Bangladesh; Bolivia; Brazil; Brunei Darussalam; Chile; Cyprus; the Dominican Republic; Ecuador; the Arab Republic of Egypt; Ghana; the Democratic Republic of Congo; Guatemala; Honduras; India; Indonesia; Ireland; Italy; Kazakhstan; Kosovo; the Kyrgyz Republic; FYR Macedonia; Mali; Mexico; Moldova; Montenegro; Mozambique; Nicaragua; Nigeria; Peru; Romania; Saudi Arabia; Tanzania; Thailand; the United Kingdom; the United States; República Bolivariana de Venezuela; the Republic of Yemen.
Source: FDI Regulations database.
The ease of hiring skilled expatriatesThis indicator measures the time and procedural steps required
to legally start working in the host country on a TWP. For ease of
reference this period will be referred to as “time to obtain a TWP.”
What is specifically measured when measuring the “time required to obtain a TWP”?
The time required to obtain a TWP measures the number of
calendar weeks it takes for a skilled expatriate (IT specialist) to
comply with all requirements of an economy after which s/he
is legally allowed to start working. The details of each step are
provided in Figure 5.
The starting point of the time period measured is when the
company has a need for a foreign IT specialist and has identified a
suitable candidate who they want to hire (Step 1). Our case study
states that the company is a newly established company which
previously has not hired foreign expatriates.
In some economies, companies are required to obtain a certifica-
tion before they are able to hire foreign expatriates (Step 2). Step
3 entails all procedures which the company and/or employee
need to comply with in order to legally start work. The end point
of the measured time period (Step 4) is the moment when the
foreign IT specialist is legally allowed to start working.
Based on our case study we asked respondents to provide us with
a total processing time range for all procedural steps with regard
to obtaining a TWP. Time ranges are preferred due to factors that
THE WORLD BANK GROUP – NOVEMBER 20138
influence time such as the nationality of the applicant, the fluctuat-
ing workload of the processing unit, and the fact that for the ma-
jority of the surveyed economies there are no specific regulations
with regard to the maximum allowed time per procedural step.
For ease of comparison we therefore work with averages.
Economies may have differences in dealing with work permits
for highly skilled expatriates with different specializations but in
general the procedures and timelines as described below can be
indicative of the process of obtaining TWP’s for other categories
of skilled expatriates. Figure 6 provides an overview of the regional
average time required to obtain a temporary work permit. Figure
7 shows which are the top 10 fastest and slowest surveyed
economies in terms of average time required to obtain
a temporary work permit.
Good practices with regard to processing Temporary Work Permits
Online TWP processing
A good practice with regard to the TWP application process is
ensuring the process can be completed online. Completion of
the TWP online means that (1) the application form(s) can be
downloaded online, (2) documents can be submitted online, (3)
confirmation documentation is received online, and (4) the prog-
ress of the application can be monitored online. In addition, when
the work permit becomes available, (5) notification is received
Company-based quotaswhich do not take into account the size of the company
Cambodia:Maximum 6% of the workforce can be skilled expatriates.
Congo, Dem. Rep.:Maximum 4% of the workforce can be skilled expatriates.
Egypt, Arab Rep:Maximum 10% of the workforce can be skilled expatriates.
Guatemala:Maximum 10% of the workforce can be skilled expatriates.
Kazakhstan:Maximum 30% of the workforce can be skilled expatriates.
Saudi Arabia: Maximum 20% of the workforce can be skilled expatriates.
Ireland: Maximum 50% of employees can be non-EU citizens.
Source: FDI Regulations database.
Company-based quotaswhich take into account the size of the company
Mozambique:
skilled expatriates cannot exceed 5% of the total number of workers.
employees): skilled expatriates cannot exceed 8 % of the total number of workers.
skilled expatriates cannot exceed 10% of the total number of workers.
Company-based quotasdependent on the foreign investment amount
Ghana:
expatriate.
skilled expatriates.
expatriates.
Nigeria:In practice,3 2 skilled expatriates are allowed in a company with a share
and 4 in a company with a share capital
Thailand:One skilled expatriate for each 2 million
with a limit of 10 skilled expatriates.
Nationwide applicable quotas2
Romania:Yearly annual quota for foreigners (for all types of work permits). For 2011, the quota was set at 5,500 work permits.
United Kingdom:For the period of 6 April 2011 to 5 April 2012 the maximum has been set
EU who will earn more than £150,000 are exempted from quotas.
United States: The quota4 per fiscal year (October 1 - September 30) is 65,000 regular H-1Bs5 regardless of position. The first 20,000 petitions received who have a Master’s degree or PhD obtained in the United States are exempted from the 65,000 figure. There are no quotas for O-1 visas6.
Italy: The Quota Agreement (decreto flussi) for 2011 is 86,580 for workers without permit of stay in Italy; 11, 500 for workers with Italian permit of stay for other reasons.
FIGURE 4. Examples of applicable quotas in surveyed economies
The company has determined it has a need to hire a foreign IT Specialist and
has identified a candidate
The company and/or future
employee comply with all the procedures
required to allow the start
of legal employ-ment in the host country
The company complies with labor
certification or other
mandatory requirements
which are required before it can start the hiring process
The foreign IT Specialist is
legally allowed to start working
in the host country
STEP 1 STEP 3STEP 2 STEP 4
FIGURE 5. The time period measured for obtaining a TWP
Source: FDI Regulations database.
EMPLOYING SKILLED EXPATRIATES 9
online. Online completion entails that no paperwork8 needs to be
submitted to the relevant authority.
Currently, Singapore and the Republic of Korea, top performers
with regard to the TWP processing time, are the only economies
with a complete online TWP processing system.
Seventy-five percent of the economies which have advanced
online capability (meaning the system allows more than only
downloading the TWP application form) have average TWP pro-
cessing times which are lower than the global average of 8 weeks.
Figure 8 shows what the specific characteristics of application
systems in surveyed economies are. In 80 percent of the surveyed
economies there is no advanced application system (a system
which allows more than only downloading the application form:
e.g., the ability to monitor the application process).
One-stop shops
Before the applicant can apply for a TWP, some economies require
a number of approvals or documents from competent authorities
in the economy where s/he wants to work. This requires coordina-
tion on the part of the applicant and may also impact the total
time required to obtain the TWP.
Having a one-stop shop where the processing unit manages
the relationship between the different competent authorities is
applicant-friendly and normally results in shorter timelines. Figure
9 shows that 80 percent of economies with one-stop shops
have TWP processing timelines which are at or below the global
average of 8 weeks.
Fast-track option
Companies which identified the right candidate for their overseas
subsidiary are eager to have their new hires start as soon as pos-
sible. As a result, companies may be willing to pay a premium for
fast-tracking the TWP process. Data from the surveyed economies
reveals that only 10 percent have such a fast- tracking option.
Economies which provide a fast-tracking option include Algeria,
Brunei Darussalam, Côte d’Ivoire, Cyprus, Georgia, the Republic of
Korea, Mauritius, the Netherlands, Spain, Tanzania, Thailand, the
United States and the United Kingdom.
FIGURE 6. Regional average time required to obtain a TWP (in calendar weeks)
Source: FDI Regulations database.
Note: Regional abbreviations, and the number of economies covered by the ESE indicators
-
0 2 4 6 8 10 12
EAP
ECA
SAR
SSA
Global Average
LAC
OECD
MENA
FIGURE 7. Average TWP processing times (in calendar weeks): Top 10 fastest and slowest economies
Source: FDI Regulations database.
0 5 10 15 20 25 30
Saudi Arabia
Greece
Honduras
Morocco
Costa Rica
United Kingdom
South Africa
Algeria
Slovak Republic
Austria
Global average
Albania
Taiwan, China
Thailand
Montenegro
Dominican Republic
Côte d'Ivoire
Mauritius
Mozambique
Singapore
Advanced online capability (the system allows more than downloading the TWP application form)
20%
35%
45%
Only the TWP application form can be downloaded online
No online component (all documents need to be physically obtained)
FIGURE 8. Characteristics of the application system in the surveyed economies (in %)
Source: FDI Regulations database.
THE WORLD BANK GROUP – NOVEMBER 201310
Restrictions on permanent residency, citizenship and availability of a Spousal Work PermitEconomies can attract skilled workers by offering a reasonable
path to permanent residency and/or citizenship, as well as
facilitating entry to the labor market for the accompanying spouse
through a spousal work permit.
Obtaining permanent residency and/or citizenship based on a TWP
Providing skilled immigrants with the option to obtain permanent
residency and/or citizenship is a factor which will be taken into
consideration by the skilled immigrant who has a number of relo-
cation options. Twenty percent of the surveyed economies do not
allow skilled expatriates to apply for a permanent residency and/or
citizenship. Figure 10 provides an overview of the skilled immigra-
tion regime of the surveyed economies in terms of pathways to
permanent residency and/or citizenship.
The Spousal Work Permit
Traditionally, the majority of expatriate partners have been women.
Nowadays, more than 50 percent of women across all age groups
work in their home country. Under the age of 35, the percentage
FIGURE 10. Economies with no path to permanent residency and/or citizenship
This map was produced by the Map Design Unit of The World Bank.The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.
NO PATH TO PERMANENT RESIDENCY OR CITIZENSHIP
NO PATH TO PERMANENT RESIDENCY BUT HAVE A PATH TO CITIZENSHIP
NO PATH TO CITIZENSHIP BUT HAVE A PATH TO RESIDENCY
IBRD 40503OCTOBER 2013
Source: FDI Regulations database
FIGURE 9. Average TWP processing times (in calendar weeks) of economies with one-stop shops
Source: FDI Regulations database.
0 2 4 6 8 10 12
Singapore
Thailand
Taiwan, China
Tunisia
Azerbaijan
Belarus
Kosovo
Malaysia
Pakistan
Cyprus
Global average
Bangladesh
Australia
Germany
France
Moldova
Note: Maroon colored economies do not have a path to permanent residency or citizenship (Armenia, Bulgaria, Côte d'Ivoire, the Arab Republic of Egypt, Ethiopia, Madagascar, Moldova, Mozambique, Nepal, Senegal, Sri Lanka, Ukraine, and the Republic of Yemen, Rep. Peach colored economies don't have a path to permanent residency but have a path to citizenship (India, Iraq, Nigeria, Nicaragua, Saudi Arabia). Brick colored economies don't have a path to citizenship but have a path to permanent residency (Chad, Ecuador, the Russian Federation).
EMPLOYING SKILLED EXPATRIATES 11
can be as high as 70-80 percent. When these women accompany
their spouses or partners on an overseas assignment, a majority
want to carry on working so that they can continue to develop
their skills and facilitate their re-entry to work when they return
home, and yet few of them manage to do so. There is of course
a growing trend of women who reach senior positions in their
companies, who also need international experience and this
has increased the proportion of male spouses and partners. The
percentage of male partners often varies with the type of organiza-
tion or industry. Many companies report an average of 10 percent
male partners.
In April 2013 the Permits Foundation conducted an International
Survey with regard to work permits and global mobility of expatri-
ate spouses and partners. The survey examined the views of
3,300 expatriate spouses and partners of 120 nationalities, who
were at the time accompanying international employees work-
ing in 117 host economies for over 200 employers in both the
private and public sector. The survey found that economies which
enable spouses or partners to work are considered as attractive
destinations by 96 percent of respondents. Economies with work
permit restrictions are less attractive and 58 percent of spouses
or partners indicated that they would be unlikely to relocate to a
country where it was difficult to get a work permit. Twenty-two per-
cent of spouses or partners reported that the expatriate employee
had turned down at least one assignment because of concerns
about the accompanying spouse’s or partner’s career or employ-
ment and 7 percent had terminated an assignment early for the
same reason. For employers, these assignment refusals and early
terminations imply lost potential and financial cost.
Spouses and partners face a number of challenges. Whereas the
employee usually transfers within his or her company as part of a
career plan, the partners have to uproot themselves from their cur-
rent job and company. They may have no professional network in
the new country and the market for their skills may be completely
different. They may face language and cultural barriers and their
qualifications may not be recognized at the same level.
Many economies require expatriate spouses or partners to have a
separate work permit, even though they are legally residents. This
is often difficult and time consuming. In short, the lengthy work
permit regulations represent a real deterrent both to the partners
themselves and to companies that might otherwise be prepared
to employ them.
Allowing spouses and partners to work in a host country does
not have a negative effect with regard to reducing employment
opportunities for local staff since the proportion of expatriate staff
and spouses/partners is very small. What is more important is the
positive impact on the economy and labor market of attracting
international companies and organizations to base their operations
in the country.
In allowing spouses to work freely, governments recognize the
value to the economy of creating an attractive climate for inward
investment, international organizations and knowledge workers.
Allowing spouses and partners to work represents a "triple win"
for internationally mobile families, the organizations that employ
them, and their host and home economies, which ultimately is
beneficial to their economic competitiveness and ability to attract
foreign direct investment.
Taking into account the specifics of the case study, respondents
answered that Spousal Work Permits are only available in Australia,
Canada, the Netherlands, the United Kingdom and Hong Kong
SAR, China. For the rest of the surveyed economies, it is difficult
for an accompanying partner to work even though they are legally
resident. Normally, the spouse is entitled to receive a dependent
visa which is linked to the TWP of the working spouse. A depen-
dent visa generally prohibits spouses taking up employment. If
the accompanying spouse would like to work then s/he would
normally need to apply separately for a TWP.
5. The Employing Skilled Expatriates index
The ESE index is based on five components of the ESE indicators:
(1) the length of time to obtain a work permit; (2) whether a
quota system is in place; (3) whether there is a potential path
to permanent residency; (4) whether there is a potential path to
citizenship; and (5) whether spousal work permits are available.
Each component was assigned a 1 or a 0, with 1 representing the
practice that is more conducive to attracting skilled immigrants.
The time required to obtain a work permit was rescaled from 0 to
1, with 0 capturing the longest amount of time and 1 the shortest.
A simple average of the five scores was taken to calculate the ESE
index for each economy, which was then scaled from 0 to 100,
with higher scores representing less restrictive regimes for employ-
ing expatriate workers. A list of the 5 data points for all surveyed
economies can be consulted in the Annex I. Figure 11 displays the
correlation between the ESE index and GNI per capita.
When correlating an economy’s ESE score with GNI per capita,
an interesting fact can be noted: on average, poorer economies
have lower ESE scores and thus feature more restrictive regimes
for employing skilled expatriates. However, this fact needs to be
approached with caution: it does not imply causality.
THE WORLD BANK GROUP – NOVEMBER 201312
The ESE index and FDI inflowsFigure 12 shows that the ESE index is positively correlated with
inflows of FDI per capita. This implies that economies with higher
ESE indexes receive more inward FDI flows per capita on average.
With the economies of Hong Kong SAR, China, Singapore,
and Ireland dropped as outliers (with inward flows of FDI per
capita greater than US$3,000), the correlation is 0.198, which is
statistically significant at the 10 percent level. With these econo-
mies included, the correlation of 0.278 is even stronger, and is
significant at the 1 percent level.
Whereas the ESE index is positively correlated with inflows of FDI
per capita, the correlation nevertheless could be more compelling.
Even though skilled immigration regimes, as measured in this
paper, are an important part of a country’s investment climate,
further research is required to ascertain to what extent a country’s
skilled immigration regime can impact FDI. In general, the cor-
relations need to be approached with caution and do not imply
causality.
Correlations between the ESE index and the Global Migration BarometerThere is existing data available from the Global Migration
Barometer from the Economist Intelligence Unit. It rates both
economies’ attractiveness to migrants considering factors such as
per-capita income and quality of healthcare and education as well
as their need for migrants, considering factors such as the old-age
dependency ratio and labor productivity. There are 43 economies
jointly covered by the ESE index and this external dataset.
The need for migrants indicator assesses a country’s possible
need for migrants, in order to sustain economic growth. It is
composed of 10 sub-indicators: (1) Old age dependency ratio,
(2) Natural population increase, (3) Employment ratio, (4) Rigidity
of employment, (5) Labor productivity, (6) Unfunded pension
and healthcare liabilities, (7) Public spending on pensions, (8)
Unemployment benefits, (9) Internal labor mobility, (10) Labor
force. Figure 13 contains the rankings, as measured by the need
for migrants indicator, of the economies surveyed in this paper.
FIGURE 13. Economies ranked according to their need for migrants (economies with the greatest need are ranked first)
1 Japan 35 Australia
2 Italy 36 New Zealand
5 Czech Republic
6 Greece 38 Venezuela, RB
41 Thailand
11 Hungary 42 Ecuador
11 Ukraine 43 Iceland
14 Bulgaria 44 Singapore
15 Germany 46 Mexico
18 Russian Federation 48 South Africa
18 United Kingdom 50 Ghana
22 Spain
Source: Economist Intelligence Unit, 2008. Global Migration Barometer.
FIGURE 11. Correlation between ESE index and GNI per capita
Source: UNCTADstat for FDI data and FDI Regulations database.
FIGURE 12. Correlation between the ESE index and a five-year average of FDI inflows per capita
Source: UNCTADstat for FDI data and FDI Regulations database.
60,000
40,000
50,000
30,500
20,000
10,000
0
GN
I per
cap
ita (U
S$)
Average ESE score per economy
0 20 40 60 80 100
2,500
2,000
1,500
1,000
500
0
Inw
ard
FDI f
low
s per
cap
ita,
2007
-11
aver
age
(USD
)
ESE Index
0 20 40 60 80 100
EMPLOYING SKILLED EXPATRIATES 13
The underlying economic and social attractiveness of an economy
will certainly be an important driver of migration flows. Once such
attractiveness is accounted for, however, analysis of the data yields
an interesting result: there is no correlation between the ESE index
and an economy’s need for migrants. Consider two economies
with the same level of attractiveness to migrants, but with different
degrees of need. As measured by the Global Migration Barometer,
Italy and New Zealand have the same level of attractiveness to
migrants.
However, they have a different need for migrants: Italy is ranked
second and New Zealand is ranked 36th on the need for migrants.
A more open immigration policy would be one way for the country
with a greater need to attract more skilled migrants; but there is
no difference on average between such economies’ immigration
policies as measured by the ESE index. This implies that there is
room for economies with a need for migrants to improve their
immigration regimes as measured by the ESE index as one means
of attracting more skilled migrants.
Economies with a greater need for migrants that have restrictive
migration policies could do better by being more liberal. For
instance, Italy could improve its migration policies by reducing
the time required to obtain a temporary work permit (it takes on
average 13 weeks to obtain a temporary work permit) and could
also reconsider the use of quotas or how they apply to skilled
expatriates.
6. Conclusion
The importance of skilled immigration reform cannot be underes-
timated and is an essential building block for the sustained global
competitiveness of any economy. This paper has highlighted the
main components of the current skilled immigration regimes in
93 economies which companies take into consideration when
deciding where to invest (how easy is it to hire skilled expati-
ates). In addition, we measured components which influence the
relocation-decision of the skilled expatriate (is there a path leading
to permanent residency and citizenship and is a spousal work
permit available).
By correlating the ESE index, which incorporates the aforemen-
tioned components, with GNI per capita we established that, on
average, poorer economies have lower ESE scores and thus have
more restrictive regimes for employing skilled expatriates. When
correlated with FDI outflows, we find that less restrictive econo-
mies attract more FDI. An interesting result is yielded when the
ESE index is correlated with the Global Migration Barometer: here
we find that there is no correlation between the ESE index and a
economy’s need for migrants. As such, an economy with a greater
need to attract skilled migrants could achieve this by making
immigration policies more liberal.
A first uncontested step with regard to skilled immigration reform
could be to adhere to the good practices in processing temporary
work permits as described in this paper. A second, potentially more
difficult, step could be to identify bottlenecks (quotas and other
restrictions which make a skilled immigration regime unattractive
or burdensome) and consider eliminating these or adjusting
their impact on skilled immigrants. Economies which are willing to
engage in such a holistic, broader skilled immigration reform will be
better situated in terms of attracting FDI and global talent, thereby
contributing to the competitiveness of their economy.
THE WORLD BANK GROUP – NOVEMBER 201314
References
Adams, R. 2003. International Migration, remittances and the brain drain: a study of 24 labor exporting countries.” World Bank Policy Research Working Paper, no. 2972. Available at: http://www- wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2003/07/08/000094946_03062104301450/ad ditional/124524322_20041117164551.pdf
Aleksynska, Mariya and Giovanni Peri. 2012. “Isolating the Network Effect of Immigrants on Trade.” Discussion Paper No. 6941, Institute for the study of Labor (IZA), 2008. Available at: http://ftp.iza.org/dp6941.pdf
Cummings, Jonathan, James Manyika, Lenny Mendonca, Ezra Greenberg, Steven Aronowits, Rohit Chopra, Katy Elkin, Sreenivas Ramaswamy, Jimmy Soni. 2010. “Growth and competitiveness in the United States: The role of its multinational companies.” Mckinsey Global Institute. Available at: http://www.mckinsey.com/insights/americas/growth_and_competitiveness_in_us
Docquier, Frédéric and Hillel Rapoport. 2004. “Skilled migration and human capital formation in developing countries – A survey.” Institute for the study of Labor (IZA). Available at: http://econ.tau.ac.il/papers/macro/hillelmacro.pdf
Economist Intelligence Unit. 2008. Global Migration Barometer: Methodology, Results and Findings. Available at: http://www.un.org/esa/population/meetings/ seventhcoord2008/GMB_ExecSumEIU.pdf
Kugler, Maurice and Hillel Rapoport. 2011. “Migration, FDI, and the Margins of Trade.” Working paper No. 222, Center for International Development at Harvard University. 2011. Available at: http://www.hks.harvard.edu/var/ezp_site/storage/fckeditor/file/pdfs/centers- programs/centers/cid/publications/faculty/wp/222.pdf
Mayr, Karin and Giovanni Peri. 2008. “Return migration as a channel for brain gain.” Working Paper 14039, National Bureau of Economic Research, 2008. Available at: http://www.nber.org/papers/w14039
Medina, Maria. 2012. “Do immigration policies make countries more attractive to multinational corporations?” Iowa State University. 2012.
Papademetriou, Demetrios, Will Somerville, and Hiroyuki Tanaka. 2008. “Talent in the 21st-Century Economy.” Migration Policy Institute, 2008. Available at: http://www.migrationpolicy.org/transatlantic/talent.pdf
Porter, Michael E. and Jan W. Rivkin. 2012. “Prosperity at Risk: Findings of Harvard Business School’s Survey on U.S. Competitiveness.” Harvard Business School, 2012. Available at: http://www.hbs.edu/competitiveness/pdf/hbscompsurvey.pdf
Regets, Mark. 2001. “Research and Policy Issues in High-Skilled International Migration: A Perspective with Data from the United States.” National Science Foundation, 2001. Available at: http://ftp.iza.org/dp366.pdf
The Permits Foundation. 2013. “The International Survey of Expatriate Spouses and Partners: Employment, work permits and global mobility Final Report, 2013.” Available at: http://www.permitsfoundation.com/wp-content/uploads/2013/04/Spousal-Survey-Full-RS.pdf
World Economic Forum. 2010. “Stimulating Economies through Fostering Talent Mobility.” Available at: http://www3. weforum.org/docs/WEF_PS_TalentMobility_report_2010.pdf
EMPLOYING SKILLED EXPATRIATES 15
ANNEX I. The 5 data points as measured in the ESE Index + Assessment by contributors whether the current skilled migration is a minor, moderate or major obstacle
Region Countries
Averagenumber of calendar weeks to get work permit
Arequotas applicable?
Is therea path to permanent residency?
Is therea path to citizens hip?
Is therea Spousal Work Permit available?
Does thecurrent skilled migration regime represent a minor, moderate or major obstacle?
Sub-Saharan Africa
ANGOLA 14 Yes No No No Moderate
CAMEROON No Yes Yes No Minor
CHAD 3 No Yes No No Moderate
CONGO, DEM. REP. 5.5 Yes Yes Yes No Major
CÔTE D'IVOIRE 2 No No No No Moderate
ETHIOPIA 0.3 No No No No Minor
GHANA 5 Yes Yes Yes No Minor
KENYA 12 No Yes Yes No Moderate
MADAGASCAR 6 No No No No Moderate
MAURITIUS 2 No No No No Moderate
MOZAMBIQUE 2 Yes No No No Minor
NIGERIA 6 Yes No Yes No Moderate
RWANDA 0.4 No Yes Yes No Minor
SENEGAL 4 No No No No Minor
SOUTH AFRICA 18 No No No No Moderate
TANZANIA 12 Yes Yes Yes No Moderate
UGANDA 8 No Yes No data No Moderate
ZAMBIA No No No No Minor
East Asia and the Pacific
BRUNEI DARUSSALAM Yes No No No Moderate
CAMBODIA 5 Yes Yes Yes No Moderate
HONG KONG SAR, CHINA 5 No Yes Yes Yes Minor
INDONESIA 4.5 Yes Yes Yes No Moderate
MALAYSIA 4 No Yes Yes No Moderate
PHILIPPINES No Yes Yes No Minor
SINGAPORE 1.5 No Yes Yes No Minor
TAIWAN,CHINA 2 No Yes Yes No Minor
THAILAND 2 Yes Yes Yes No Moderate
VIETNAM 12 No Yes Yes No Moderate
Eastern Europeand Central Asia
ALBANIA 2.5 No Yes Yes No Minor
ARMENIA 4.5 No No No No Minor
AZERBAIJAN 3.5 Yes Yes Yes No Moderate
BELARUS 3.5 No Yes Yes No Minor
BOSNIA AND HERZEGOVINA 4.5 No Yes Yes No Moderate
THE WORLD BANK GROUP – NOVEMBER 201316
Region Countries
Averagenumber of calendar weeks to get work permit
Arequotas applicable?
Is therea path to permanent residency?
Is therea path to citizens hip?
Is therea Spousal Work Permit available?
Does thecurrent skilled migration regime represent a minor, moderate or major obstacle?
Eastern Europeand Central Asia (cont.)
BULGARIA No No No No Moderate
CROATIA 4.5 No Yes Yes No Moderate
CYPRUS Yes Yes Yes No Moderate
GEORGIA 5 No Yes Yes No Minor
KAZAKHSTAN 10 Yes Yes Yes No Moderate
KOSOVO 4.5 Yes Yes Yes No Moderate
KYRGYZ REPUBLIC Yes Yes Yes No Minor
MACEDONIA, FYR 12 Yes Yes Yes No Minor
MOLDOVA 12 Yes No No No Moderate
MONTENEGRO 2 Yes Yes Yes No Minor
POLAND No Yes No No Moderate
ROMANIA 10 Yes Yes Yes No Minor
RUSSIAN FEDERATION 3 No Yes No No Minor
SERBIA 4.5 No Yes Yes No Minor
TURKEY No Yes Yes No Minor
UKRAINE 6 No No No No Moderate
Latin America and the Caribbean
ARGENTINA 2.5 No Yes Yes No Minor
BOLIVIA 4 Yes Yes Yes No Moderate
BRAZIL Yes Yes Yes No Moderate
CHILE 12 Yes Yes Yes No Minor
COLOMBIA 4 No Yes Yes No Major
COSTA RICA 20 No Yes Yes No Moderate
DOMINICAN REPUBLIC 2 No Yes Yes No Minor
ECUADOR 10 Yes Yes No No Moderate
GUATEMALA 6 Yes Yes Yes No Minor
HONDURAS 22 Yes Yes Yes No Moderate
MEXICO 6 Yes Yes Yes No Minor
NICARAGUA 12 Yes No Yes No Moderate
PERU Yes Yes Yes No Minor
VENEZUELA, RB 8 Yes Yes Yes No Moderate
Middle East and North Africa
ALGERIA 16 Yes Yes Yes No Major
EGYPT, ARAB REP. 6 Yes No No No Moderate
IRAQ 3.5 No No Yes No Minor
JORDAN No Yes Yes No Moderate
MOROCCO 21 No Yes Yes No Minor
SAUDI ARABIA 24 Yes No No No Minor
TUNISIA 2.5 No Yes Yes No Moderate
YEMEN, REP. Yes No No No Moderate
EMPLOYING SKILLED EXPATRIATES 17
Region Countries
Averagenumber of calendar weeks to get work permit
Arequotas applicable?
Is therea path to permanent residency?
Is therea path to citizens hip?
Is therea Spousal Work Permit available?
Does thecurrent skilled migration regime represent a minor, moderate or major obstacle?
High Income OECD
AUSTRALIA 8 No Yes Yes Yes Minor
AUSTRIA 14 No Yes Yes No Moderate
CANADA 5 No Yes Yes Yes Minor
CZECH REPUBLIC 10 No Yes Yes No Moderate
FRANCE 10 No Yes Yes No Moderate
GERMANY No Yes Yes No Minor
GREECE 24 No Yes Yes No Moderate
IRELAND 3.5 Yes Yes Yes No Moderate
ITALY 13 Yes Yes Yes No Moderate
JAPAN 10 No Yes Yes No Minor
KOREA, REP 1.5 No No Yes No Minor
NETHERLANDS 8 No Yes Yes Yes Minor
NEW ZEALAND 4 No Yes Yes No Minor
SLOVAK REPUBLIC 15 No Yes Yes No Moderate
SPAIN 8 No Yes Yes No Moderate
UNITED KINGDOM 20 Yes Yes Yes Yes Moderate
UNITED STATES 12 Yes Yes Yes No Moderate
South Asia
BANGLADESH 8 Yes Yes Yes No Minor
INDIA 3 Yes No Yes No Moderate
NEPAL No No No No Moderate
PAKISTAN 6 No Yes Yes No Minor
SRI LANKA 5 No No No No Minor
Source: FDI Regulations database.
THE WORLD BANK GROUP – NOVEMBER 201318
ANNEX II. Restrictions on nationality or residency of foreign members of the Board of Directors
Economy Residence restriction Economy Nationality restriction
Argentina The majority of foreign directors need to have their residence in Argentina.
Bangladesh Non-recognized country nationals are not eligible to be a member of the Board of Directors (i.e., Israel).
India The managing director of a public com-pany is required to have resided in India for a continuous period of not less than 12 months immediately preceding the date of appointment and is required to be in India on a valid employment visa.10
Brunei Darussalam 50 percent of the directors must have the Brunei nationality.
Canada At least 25 percent of the Board of Directors must be "permanent residents" in Canada.
Egypt, Arab Rep. An Egyptian manager is required for limited liability companies.
Philippines A majority of the Board of Directors must be residents of the Philippines.
Indonesia Expatriates from 18 listed economies cannot be part of the Board of Directors.
Indonesia A President Director who has the authority to represent the foreign subsidiary is required to reside in Indonesia.
Jordan Some nationalities are restricted in Jordan based on unpublished lists by the Ministry of Interior. Each work application will be screened by the Ministry of Interior.
Ireland An Irish company is required to have at least 1 director who is a resident of the European Economic Area.
Pakistan The nationals of the following economies are prohibited to be a member of the Board of Directors: Azerbaijan, Bangladesh, Bhutan, India, Israel, Iraq, Kyrgyzstan, Libya, Nigeria, Palestine, Somalia, Sudan, Syria, Tanzania, Tajikistan, Uganda and Uzbekistan.
Japan At least one representative director is required to live and be domiciled in Japan.
Rwanda At least one director must reside in Rwanda.
Singapore At least 1 director of a foreign-owned subsidiary has to reside in Singapore. This is evidenced by physical residence as well as the provision of a Singapore citizenship, Singapore permanent residence or a valid work permit.
EMPLOYING SKILLED EXPATRIATES 19
ENDNOTES
1 Employing Skilled Expatriates is part of the FDI Regulations database of the Global Indicators and Analysis Department (GIA) of the World Bank Group. The author is a Private Sector Development Specialist working in GIA.
2 Nationwide applicable quotas refer to an annual limit on
foreigners; applications of eligible candidates are approved on
a first-come first-serve basis until the limit has been reached.
3 In Nigeria there are no standard characteristics of quotas
granted or a calculation employed. It is granted at the
discretion of the Ministry of Interior. Factors that are taken into
account in the determination of the quota applicable to the
applying company are: (1) the share capital of a company;
(2) training and under-study of Nigerian employees in order
to acquire the relevant skills for the eventual take-over of the
positions.
4 During the most recent years, the H-1B quota has been
reached many months prior to the end of the fiscal year,
resulting in substantial delays before companies may apply
for H-1B visas on behalf of many foreign nationals. In the
current fiscal year, the H-1B quota was reached only two
months after the start of the new fiscal year. H-1B petitions
may be filed up to 6 months prior to the start of a fiscal year,
but employment may not begin until the start of the fiscal
year.
5 The H-1B is a non-immigrant visa in the United States under
the Immigration and Nationality Act, section 101(a)(15)(H).
It allows US employers to temporarily employ foreign workers
in specialty occupations.
6 An O visa is a classification of non-immigrant temporary
worker visa granted by the United States to an alien "who
possesses extraordinary ability in the sciences, arts, education,
business, or athletics, or who has a demonstrated record of
extraordinary achievement in the motion picture or television
industry and has been recognized nationally or internation-
ally for those achievements," and to certain assistants and
immediate family members of such aliens.
7 There is no distinction between specialized and non-
specialized workers. The application scope of the quota
depends of the nationality of the worker and industry sectors.
The quota's decree is binding if the foreign worker does not
have a permit to stay in Italy. Quotas are calculated on the
basis of market requests.
8 In certain economies documents can be submitted online
but those same documents are also required to be submitted
separately in person. For example, in Turkey even though the
documents can be submitted online, hard copies signed by
the applicant must also be submitted to the Labor Ministry.
Some economies are taking active steps to upgrade to a
fully online application system. For example, the Netherlands
currently requires sending in a hard copy of the applica-
tion documents (which can be downloaded) to the work
placement branch of the Employee Insurance Agency (UWV WERKbedrijf) by ordinary mail. The Dutch Modern Migration
Policy and the National Visa Act both entered into force on
June 1, 2013, and it is expected that once the new informa-
tion system (INDIGO) is fully operational applications will
be able to be to be completed online (no hard copies are
required).
9 Data for Nepal is valid as of April 2012. Please note that
since then Nepal has made improvements to its work permit
regime by extending the validity of the work permit from 1
year to 5 years.
10 If this requirement is not met, the approval of the Central
Government is required for the appointment.
THE WORLD BANK GROUP – NOVEMBER 201320
Contributors
GLOBAL AND REGIONAL CONTRIBUTORS DELOITTE
DLA PIPER
ERNST & YOUNG
GIDE LOYRETTE NOUEL
JOHN W FFOOKS & CO
KPMG
MAYER BROWN
PWC
SALANS
TALAL ABU-GHAZALEH LEGAL
WHITE & CASE
WORLD LAW GROUP
WOLF THEISS
AFGHANISTAN Sayed Kazim FakhriMINISTRY OF LABOUR, SOCIAL AFFAIRS, MARTYRS AND DISABLED
Mohammad Usman HelaliMINISTRY OF FOREIGN AFFAIRS
ALBANIA
Erlindi BashaOPTIMA LEGAL & FINANCIAL
Gerond BegolliPWC AUDIT SH.P.K.
Jonida BeqiriDRAKOPOULOS LAW FIRM
Shirli GorencaKALO & ASSOCIATES
Alexandros KarakitisERNST&YOUNG ALBANIA
Erlind KodhelajBOGA & ASSOCIATES
Ekflodia LeskajDRAKOPOULOS LAW FIRM
Nevila MucaPWC AUDIT SH.P.K.
Blerta NeshoWOLF THEISS SH.P.K.
Elda ShurajaHOXHA, MEMI & HOXHA
Jonida SkendajBOGA & ASSOCIATES
ANGOLA Rita AmaralPWC ANGOLA, LDA.
Pedro CalixtoPWC ANGOLA, LDA.
Maria Manuela CunhaMMMC ADVOGADOS
Filipa LimaRUA SOUSA MARTINS, N.º 10 - LISBOA - PORTUGAL
Itweva NogueiraCFRA LAW FIRM
Nair PitraCFRA LAW FIRM
Candice SaraivaMMC ADVOGADOS
Ana TeixeiraPWC ANGOLA, LDA.
GLA - GABINETE LEGAL ANGOLA
ARGENTINA Martina BordoliNEGRI & TEIJEIRO ABOGADOS
Martín CalatravaBRUCHOU, FERNANDEZ MADERO & LOMBARDI
Juan Manuel ChiesaBRUCHOU, FERNANDEZ MADERO & LOMBARDI
Esteban ChristensenHOPE DUGGAN & SILVA
Pedro L. de la FuenteRATTAGAN, MACCHIAVELLO, AROCENA & PEÑA ROBIROSA
Cecila A. de MúgicaRATTAGAN, MACCHIAVELLO, AROCENA & PEÑA ROBIROSA
Mariano Fabrizio DFG ABOGADOS
Daniel FogliaNEGRI & TEIJEIRO ABOGADOS
Diego S. KellyMARVAL, O’FARRELL & MAIRAL
Juan R. LarrouyRATTAGAN, MACCHIAVELLO, AROCENA & PEÑA ROBIROSA
Monica LupiSANCHEZ, LUPI & ASSOCIATES
Pablo MastromarinoTANOIRA CASSAGNE
Gonzalo SanchezSANCHEZ, LUPI & ASSOCIATES
Octavio SillittiDFG ABOGADOS
Pablo StaszewskiSTASZEWSKI & ASOC.
Enrique M. StileMARVAL, O’FARRELL & MAIRAL
Juan Bautista ZambonBRUCHOU, FERNANDEZ MADERO & LOMBARDI
ARMENIA Suren GomtsianCONCERN DIALOG LAW FIRM
Davit HarutyunyanPWC ARMENIA
Vahe KakoyanINVESTMENT LAW GROUP LLC
Kamo KarapetyanERNST & YOUNG CJSC
Edith KhachatourianILC (INTERNATIONAL LEGAL CONSULTING)
Lilit MatevosyanPWC ARMENIA
Nerses NersisyanPWC ARMENIA
Suren PetrosyanILC (INTERNATIONAL LEGAL CONSULTING)
David SargsyanAMERIA CJSC
Liana VoskerchyanGRIGORYAN & PARTNERS (GPARTNERS) LAW FIRM
AUSTRALIA Simon DewberryALLENS ARTHUR ROBINSON
Luke GattusoALLENS ARTHUR ROBINSON
Jenni PriestleyALLENS ARTHUR ROBINSON
DEPARTMENT OF IMMIGRATION AND CITIZENSHIP
AUSTRIA Viktoria EbnerBINDER GRÖSSWANG GMBH
Alexander ForsterCMS REICH-ROHRWIG HAINZ RECHTSANWÄLTE GMBH
Stefan KoeckFRESHFIELDS BRUCKHAUS DERINGER
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Sina SteurerWOLF THEISS RECHTSANWÄLTE GMBH
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AZERBAIJAN Ophelia AbdullayevaSALANS UK LIMITED
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Nikolay KolevBOYANOV & CO
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Hristo NihrizovDIMITROV, PETROV & CO. LAW FIRM
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Luis Alberto Cruchaga
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CHINA Farrell ChenPWC INTERNATIONAL ASSIGNMENT SERVICES SHANGHAI LTD.
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Ying ChenHYLANDS LAW FIRM SHANGHAI OFFICE
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Youping DengJINGTIAN & GONGCHENG
Iris DuchetsmannSALANS SHANGHAI REPRESENTATIVE OFFICE
Grace FangPINSENT MASONS LLP
John Grobowski FAEGRE & BENSON LLP SHANGHAI REPRESENTATIVE OFFICE
Jiang JiangHYLANDS LAW FIRM SHANGHAI OFFICE
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Ming PanHYLANDS LAW FIRM SHANGHAI OFFICE
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Adriana HincapiéPWC
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María Beatriz MadridPOSSE, HERRERA & RUIZ
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Edgar PicónBRIGARD & URRUTIA ABOGADOS
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Juanita VeraCARDENAS & CARDENAS ABOGADOS LTDA
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DOMINICAN REPUBLIC Isabel AndricksonRUSSIN VECCHI & HEREDIA BONETTI
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Amelle OrtizRUSSIN VECCHI & HEREDIA BONETTI
ECUADOR Pablo AguirrePWC ASESORES EMPRESARIALES CÍA. LTDA.
Manuel CartagenaDELOITTE & TOUCHE ECUADOR
Sebastian CortezNOBOA, PEÑA, LARREA & TORRES LAW FIRM
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Esteban OrtizPÉREZ, BUSTAMANTE & PONCE, ABOGADOS
Patricio PenaNOBOA, PEÑA, LARREA & TORRES LAW FIRM
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ROMERO ARTETA PONCE ASOCIADOS
THE WORLD BANK GROUP – NOVEMBER 201322
EGYPT, ARAB REP. Eslam El-HarmyDLA MATOUK BASSIOUNY
Mohamed El-HarmyDLA MATOUK BASSIOUNY
Mai El-ShaarawyNOUR LAW OFFICE IN ASSOCIATION WITH TROWERS
Sara HintonNOUR LAW OFFICE IN ASSOCIATION WITH TROWERS AND HAMLINS
Ashraf IhabZULFICAR & PARTNERS LAW FIRM
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Eman RiadDLA MATOUK BASSIOUNY LAWFIRM
ETHIOPIA Million HabteMH-TRADE & DEV’T LAW OFFICE (MH-TDLO)
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FRANCE Emilie Ducorps-ProuvostSOULIER AARPI LAW FIRM
Morisson-Couderc EmmanuelERNST & YOUNG SOCIÉTÉ D’AVOCATS
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GERMANY Carolin GaethkeSALANS LLP
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GREECE Ioannis ChristoforidisROUSSOS HATZIDIMITRIOU LAW PARTNERSHIP
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Vaggelis Kalogerogiannis BAHAS GRAMATIDIS AND PARTNERS
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GUATEMALA Rafael Alvarado-RiedelCONSORTIUM - RODRÍGUEZ, ARCHILA, CASTELLANOS, SOLARES & AGUILAR, S.C.
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Dong Yeol ShinHANOL LAW OFFICES
KOSOVO Sokol ElmazajBOGA&ASSOCIATES
Rakotondratsiory Haingotiana Maria AndrianariveloPWC TAX AND LEGAL
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Thomas KienbauerWOLF THEISS RECHTSANWÄLTE GMBH
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MACEDONIA, FYR Goce AdamceskiACT! CONSULTANCY SERVICES LTD.SKOPJE
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Dori Kimova
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MALAYSIA Ravelomanana AndriamisaPWC TAX AND LEGAL
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Li Hoong LeeMESSRS. SKRINE
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Carlos IbarraIBARRA, DEL PASO Y GALLEGO, S.C
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