Emigration and Democracy
41 Pages Posted: 16 Oct 2015
Date Written: October 11, 2015
International migration is an important determinant of institutions, not considered so far in the development literature. Using cross-section and panel analysis for a large sample of developing countries, we find that openness to emigration (as measured by the natives’ average emigration rate) has a positive effect on home-country institutional development (as measured by standard democracy indices). The results are robust to a wide range of specifications and identification methods. Remarkably, the cross-sectional estimates are fully in line with the implied long-run relationship from dynamic panel regressions.
Keywords: Migration, Institutions, Democracy, Development
JEL Classification: O15, O43, F22
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