Immigration and Economic Freedom of the US States: Does the Institutional Quality of Immigrants’ Origin Countries Matter?

45 Pages Posted: 7 Feb 2019 Last revised: 9 Mar 2020

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: February 25, 2020

Abstract

This paper examines whether the institutional quality of immigrants’ origin countries matters when testing the relationship between immigration and 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. For other immigrant groups coming from countries that rank higher in terms of economic freedom, the relationship is negative but is not statistically significant or is weakly 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, Immigration and Economic Freedom of the US States: Does the Institutional Quality of Immigrants’ Origin Countries Matter? (February 25, 2020). 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
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Denver, CO 80217
United States
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HOME PAGE: http://www.alexandrepadilla.com

Nicolas Cachanosky

Metropolitan State University of Denver ( email )

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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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