The Grecian Horse II: Do Immigrants Import Their Home Country’s Institutions Into Their Host Countries? The Case of the American States

34 Pages Posted: 7 Feb 2019 Last revised: 19 Sep 2019

See all articles by Alexandre Padilla

Alexandre Padilla

Metropolitan State University of Denver - Department of Economics

Nicolas Cachanosky

Metropolitan State University of Denver; American Institute for Economic Research

Date Written: January 15, 2019

Abstract

This paper examines whether the institutional quality of immigrants’ origin countries matters when testing how immigrants impact the US states’ economic freedom scores. Our results show that, in the short run, the relationship between economic freedom and immigrants from countries ranked in the second quartile of the Fraser Institute’s Economic Freedom of the World report is negative and statistically significant, but it is not economically significant. In the long run, the relationship between economic freedom and immigrants from countries ranked in the bottom quartile of the EFW report is positive and statistically significant, but it is not economically significant. Further, the long-run relationship between economic freedom and immigrants from the most economically free countries is negative and statistically significant, but again it is not economically significant. Our results are robust to various specifications.

Keywords: Economic Freedom, Immigration, Institutions, State Government

JEL Classification: F22, H70, O43

Suggested Citation

Padilla, Alexandre and Cachanosky, Nicolas, The Grecian Horse II: Do Immigrants Import Their Home Country’s Institutions Into Their Host Countries? The Case of the American States (January 15, 2019). Available at SSRN: https://ssrn.com/abstract=3316415 or http://dx.doi.org/10.2139/ssrn.3316415

Alexandre Padilla (Contact Author)

Metropolitan State University of Denver - Department of Economics ( email )

Economics department, Campus Box 77
PO Box 173362
Denver, CO 80217
United States
303- 615-0111 (Phone)
303-556-3966 (Fax)

HOME PAGE: http://www.alexandrepadilla.com

Nicolas Cachanosky

Metropolitan State University of Denver ( email )

Student Success Building
890 Auraria Pkwy #310
Denver, CO 80217
United States

HOME PAGE: http://www.ncachanosky.edu

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

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