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Migration as an antidote to rent-seeking?

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Author Info
Fabio Mariani () (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)

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Abstract

We develop a new mechanism through which skilled migration may influence economicperformance in the sending country. If agents can choose between acting asrent-seekers and engaging in productive activities, and only productive skills are exportable,a positive probability of migration (to a more secure economy) reduces therelative expected returns from rent-seeking, thus decreasing the proportion of skilledworkers who opt for ”parasitic” activities. Such an improvement in the allocation oftalent may prevail over the loss of skilled workers due to outmigration. However, weshow that this result is not robust to the introduction of endogenous protection. If productiveworkers share their resources between accumulation of productive capital andinvestment in security, prospective migration may induce a weaker protection againstrent-seeking, which in turn might depress average income in the source economy.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00186460_v1.

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Date of creation: Nov 2007
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Publication status: Published, Journal of Development Economics, 2007, 84, 2, 609-630
Handle: RePEc:hal:cesptp:halshs-00186460_v1

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Keywords: Rent-seeking; Skilled migration;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December. [Downloadable!] (restricted)
  2. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October. [Downloadable!] (restricted)
  3. Baland, Jean-Marie & Francois, Patrick, 2000. "Rent-seeking and resource booms," Journal of Development Economics, Elsevier, vol. 61(2), pages 527-542, April. [Downloadable!] (restricted)
  4. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February. [Downloadable!] (restricted)
  5. Mehlum, Halvor & Moene, Karl & Torvik, Ragnar, 2003. "Predator or prey?: Parasitic enterprises in economic development," European Economic Review, Elsevier, vol. 47(2), pages 275-294, April. [Downloadable!] (restricted)
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  6. Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Elisabetta Lodigiani, 2009. "Diaspora Externalities as a Cornerstone of the New Brain Drain Literature," Development Working Papers 277, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
  2. David Croix & Clara Delavallade, 2009. "Growth, public investment and corruption with failing institutions," Economics of Governance, Springer, vol. 10(3), pages 187-219, July. [Downloadable!] (restricted)
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