ABSTRACT
This chapter describes the ability of small island states and territories to activate and explore the opportunities in the diasporic economy is the new frontier in global competitiveness, innovation and entrepreneurship. The chapter examines the emigration and development nexus in relation to the growth of diasporic markets and diasporic entrepreneurship in small island jurisdictions. Remittances and other flows have played a critical role in developing countries in terms of poverty reduction and bilateral trade. Remittances or money transfers, which are a key indicator of the size of the diasporic economy, have contributed to a more favorable balance-of-payments position in several labor-exporting territories in the Caribbean. The two entrepreneur profiles are highlighted to illustrate the impact of diasporic entrepreneurship on two sectors that are dominant in the diasporic market and critical for the export diver-sification of the Caribbean small island economy. Several Caribbean island states also appear on the top 10 list in terms of emigration rates for the tertiary educated.
