Reforms that Keep You Home: Migration in Transition Economies
28 Pages Posted: 6 Feb 2018
Date Written: January 29, 2018
In this paper, the variation in the transition process among post-communist countries is used to show that positive prospects about future economic development formed by reform progress reduce emigration. The analysis uses panel data on 28 post-communist countries observed during 1991-2010. The estimated effect is statistically significant and suggests that a change in the EBRDs reform indicator by one standard deviation reduces emigration by about as much as a change of GDP in the origin by one standard deviation. Reforms stimulating the business environment and improving access to credit have the strongest impact on emigration. Progress in infrastructure reforms, by contrast, are found to have no association with emigration.
Keywords: EBRD transition indicators, emigration, post-communist countries, multilateral resistance
JEL Classification: F22, J61, O15
Suggested Citation: Suggested Citation