IDEAS home Printed from https://ideas.repec.org/a/vrs/izajdm/v11y2020i1p31n16.html
   My bibliography  Save this article

Corruption and the Desire to Leave Quasi-Experimental Evidence on Corruption as a Driver of Emigration Intentions

Author

Listed:
  • Auer Daniel
  • Tjaden Jasper

    (WZB Berlin Social Science Center, Reichpietschufer 50, 10785Berlin, Germany)

  • Römer Friederike

    (University of Bremen, Mary-Somerville-Straße 7, 28359, Bremen, Germany)

Abstract

Whether and to what extent corruption drives emigration has received growing attention in the literature in recent years, yet the nature of the relationship remains unclear. To test causal claims, we rely on representative global survey data of more than 280,000 respondents across 67 countries from 2010 to 2014. We use two different measures of emigration intentions and individual, as well as country-level measures of corruption, and propose to instrument the endogenous presence of corruption in a country with the prevalence of cashless transactions in the economy to correct for potential estimation bias. We find robust support for the hypothesis that corruption increases emigration intentions across countries. The effect, however, is likely to be underestimated in conventional models that do not account for endogeneity. The results highlight the need to look beyond purely economic, social, security-related, and environmental drivers when assessing the root causes of migration.

Suggested Citation

  • Auer Daniel & Tjaden Jasper & Römer Friederike, 2020. "Corruption and the Desire to Leave Quasi-Experimental Evidence on Corruption as a Driver of Emigration Intentions," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-31, January.
  • Handle: RePEc:vrs:izajdm:v:11:y:2020:i:1:p:31:n:16
    DOI: 10.2478/izajodm-2020-0007
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/izajodm-2020-0007
    Download Restriction: no

    File URL: https://libkey.io/10.2478/izajodm-2020-0007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mariani, Fabio, 2007. "Migration as an antidote to rent-seeking?," Journal of Development Economics, Elsevier, vol. 84(2), pages 609-630, November.
    2. Everett Lee, 1966. "A theory of migration," Demography, Springer;Population Association of America (PAA), vol. 3(1), pages 47-57, March.
    3. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    4. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
    5. Méon, Pierre-Guillaume & Weill, Laurent, 2010. "Is Corruption an Efficient Grease?," World Development, Elsevier, vol. 38(3), pages 244-259, March.
    6. Abdih, Yasser & Chami, Ralph & Dagher, Jihad & Montiel, Peter, 2012. "Remittances and Institutions: Are Remittances a Curse?," World Development, Elsevier, vol. 40(4), pages 657-666.
    7. Pierre-Guillaume Méon & Khalid Sekkat, 2005. "Does corruption grease or sand the wheels of growth?," Public Choice, Springer, vol. 122(1), pages 69-97, January.
    8. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LP, vol. 7(4), pages 465-506, December.
    9. Artjoms Ivlevs & Roswitha M. King, 2017. "Does emigration reduce corruption?," Public Choice, Springer, vol. 171(3), pages 389-408, June.
    10. Jeffrey D. Sachs, 2001. "Tropical Underdevelopment," NBER Working Papers 8119, National Bureau of Economic Research, Inc.
    11. Frédéric Docquier & Giovanni Peri & Ilse Ruyssen, 2016. "The Cross-country Determinants of Potential and Actual Migration," World Scientific Book Chapters, in: The Economics of International Migration, chapter 12, pages 361-423, World Scientific Publishing Co. Pte. Ltd..
    12. Gupta, Sanjeev & Pattillo, Catherine A. & Wagh, Smita, 2009. "Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa," World Development, Elsevier, vol. 37(1), pages 104-115, January.
    13. Nejad, Maryam Naghsh & Young, Andrew T., 2016. "Want freedom, will travel: Emigrant self-selection according to institutional quality," European Journal of Political Economy, Elsevier, vol. 45(S), pages 71-84.
    14. Eugen Dimant & Tim Krieger & Daniel Meierrieks, 2013. "The effect of corruption on migration,1985--2000," Applied Economics Letters, Taylor & Francis Journals, vol. 20(13), pages 1270-1274, September.
    15. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Staff Papers, Palgrave Macmillan, vol. 45(4), pages 559-594, December.
    16. J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
    17. Huang, Yongfu, 2010. "Political Institutions and Financial Development: An Empirical Study," World Development, Elsevier, vol. 38(12), pages 1667-1677, December.
    18. Nye, J. S., 1967. "Corruption and Political Development: A Cost-Benefit Analysis," American Political Science Review, Cambridge University Press, vol. 61(2), pages 417-427, June.
    19. Arusha Cooray & Friedrich Schneider, 2016. "Does corruption promote emigration? An empirical examination," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 293-310, January.
    20. Mr. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Working Papers 1998/063, International Monetary Fund.
    21. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    22. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    23. Bianca Clausen & Aart Kraay & Zsolt Nyiri, 2011. "Corruption and Confidence in Public Institutions: Evidence from a Global Survey," The World Bank Economic Review, World Bank, vol. 25(2), pages 212-249.
    24. Marie Poprawe, 2015. "On the relationship between corruption and migration: empirical evidence from a gravity model of migration," Public Choice, Springer, vol. 163(3), pages 337-354, June.
    25. Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 201-234, National Bureau of Economic Research, Inc.
    26. Naved Ahmad, 2001. "Corruption Perception Indices: A Comparative Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(4), pages 813-830.
    27. Richard Black & Stephen R. G. Bennett & Sandy M. Thomas & John R. Beddington, 2011. "Migration as adaptation," Nature, Nature, vol. 478(7370), pages 447-449, October.
    28. Dzhumashev Ratbek, 2016. "The Role of Income Uncertainty in the Corruption–Growth Nexus," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 1169-1201, April.
    29. Dilyan Donchev & Gergely Ujhelyi, 2014. "What Do Corruption Indices Measure?," Economics and Politics, Wiley Blackwell, vol. 26(2), pages 309-331, July.
    30. Abowd, John M. & Freeman, Richard B. (ed.), 1991. "Immigration, Trade, and the Labor Market," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226000954, December.
    31. Rowlands, Dane, 1999. "Domestic Governance and International Migration," World Development, Elsevier, vol. 27(8), pages 1477-1491, August.
    32. Jahedi, Salar & Méndez, Fabio, 2014. "On the advantages and disadvantages of subjective measures," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 97-114.
    33. Axel Dreher & Martin Gassebner, 2013. "Greasing the wheels? The impact of regulations and corruption on firm entry," Public Choice, Springer, vol. 155(3), pages 413-432, June.
    34. Visar Malaj & Stefano de Rubertis, 2017. "Determinants of migration and the gravity model of migration – application on Western Balkan emigration flows," Migration Letters, Migration Letters, vol. 14(2), pages 204-220, May.
    35. K. Warner & M. Hamza & A. Oliver-Smith & F. Renaud & A. Julca, 2010. "Climate change, environmental degradation and migration," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 55(3), pages 689-715, December.
    36. Nathan J. Ashby, 2010. "Freedom and International Migration," Southern Economic Journal, John Wiley & Sons, vol. 77(1), pages 49-62, July.
    37. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    38. Cooray, Arusha & Dzhumashev, Ratbek, 2018. "The effect of corruption on labour market outcomes," Economic Modelling, Elsevier, vol. 74(C), pages 207-218.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Auer, Daniel & Römer, Friederike & Tjaden, Jasper, 2020. "Corruption and the Desire to Leave Quasi-Experimental Evidence on Corruption as a Driver of Emigration Intentions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(1), pages 1-1.
    2. Eugen Dimant & Guglielmo Tosato, 2018. "Causes And Effects Of Corruption: What Has Past Decade'S Empirical Research Taught Us? A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 335-356, April.
    3. repec:pdn:wpaper:79 is not listed on IDEAS
    4. Dimant Eugen & Redlin Margarete & Krieger Tim, 2015. "A Crook is a Crook . . . But is He Still a Crook Abroad? On the Effect of Immigration on Destination-Country Corruption," German Economic Review, De Gruyter, vol. 16(4), pages 464-489, December.
    5. repec:pdn:wpaper:70 is not listed on IDEAS
    6. Arif, Imran, 2022. "Educational attainment, corruption, and migration: An empirical analysis from a gravity model," Economic Modelling, Elsevier, vol. 110(C).
    7. Thierry Baudassé & Rémi Bazillier & Ismaël Issifou, 2018. "Migration And Institutions: Exit And Voice (From Abroad)?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 727-766, July.
    8. Cooray, Arusha & Dzhumashev, Ratbek & Schneider, Friedrich, 2017. "How Does Corruption Affect Public Debt? An Empirical Analysis," World Development, Elsevier, vol. 90(C), pages 115-127.
    9. Marie Poprawe, 2015. "On the relationship between corruption and migration: empirical evidence from a gravity model of migration," Public Choice, Springer, vol. 163(3), pages 337-354, June.
    10. Maria Kravtsova & Aleksey Oshchepkov, 2019. "Market And Network Corruption," HSE Working papers WP BRP 209/EC/2019, National Research University Higher School of Economics.
    11. Jamie Bologna Pavlik & Estefania Lujan Padilla & Benjamin Powell, 2019. "Cultural Baggage: Do Immigrants Import Corruption?," Southern Economic Journal, John Wiley & Sons, vol. 85(4), pages 1243-1261, April.
    12. Artjoms Ivlevs & Roswitha M. King, 2017. "Does emigration reduce corruption?," Public Choice, Springer, vol. 171(3), pages 389-408, June.
    13. Nur-tegin, Kanybek & Jakee, Keith, 2020. "Does corruption grease or sand the wheels of development? New results based on disaggregated data," The Quarterly Review of Economics and Finance, Elsevier, vol. 75(C), pages 19-30.
    14. Aziz, Nusrate & Chowdhury, Murshed & Cooray, Arusha, 2022. "Why do people from wealthy countries migrate?," European Journal of Political Economy, Elsevier, vol. 73(C).
    15. Simon Winter, 2020. "“It’s the Economy, Stupid!”: On the Relative Impact of Political and Economic Determinants on Migration," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(2), pages 207-252, April.
    16. Malanski, Leonardo Köppe & Póvoa, Angela Cristiane Santos, 2021. "Economic growth and corruption in emerging markets: Does economic freedom matter?," International Economics, Elsevier, vol. 166(C), pages 58-70.
    17. Shrabani Saha & Girijasankar Mallik & Dimitrios Vortelinos, 2017. "Does Corruption Facilitate Growth? A Cross-national Study in a Non-linear Framework," South Asian Journal of Macroeconomics and Public Finance, , vol. 6(2), pages 178-193, December.
    18. Roberto Dell’Anno, 2020. "Corruption around the world: an analysis by partial least squares—structural equation modeling," Public Choice, Springer, vol. 184(3), pages 327-350, September.
    19. Andrew Hodge & Sriram Shankar & D. S. Prasada Rao & Alan Duhs, 2011. "Exploring the Links Between Corruption and Growth," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 474-490, August.

    More about this item

    Keywords

    corruption; governance; migration; push factor; emigration intention;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:izajdm:v:11:y:2020:i:1:p:31:n:16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.