Immigration and Economic Growth: Do Origin and Destination Matter?
AbstractThis paper assesses the heterogeneous effects of immigration on economic growth depending on both the origin and the destination countries. Following the development of a simple growth model augmented by the embodied human capital of immigrants, we estimate the growth equation using both a gravity-style instrument variable approach and the dynamic system-GMM estimator. We find that immigration from developed economies positively affects the economic growth of the host countries. Furthermore, the growth-enhancing effect of immigration is significantly larger when immigration flows from developed to developing economies than when it does to those that include both developed and developing economies. We interpret these results as evidence of immigrants from developed countries bringing with them - upon entry - their advanced knowledge on technology and institutions into the developing countries that host them.
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Bibliographic InfoPaper provided by Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University in its series CEI Working Paper Series with number 2012-01.
Length: 30, 13 p.
Date of creation: Jul 2012
Date of revision:
Immigration; economic growth; human capital; institutions;
Other versions of this item:
- Kang, Youngho & Kim, Byung-Yeon, 2012. "Immigration and Economic Growth: Do Origin and Destination Matter?," MPRA Paper 39695, University Library of Munich, Germany.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-11 (All new papers)
- NEP-DEM-2012-11-11 (Demographic Economics)
- NEP-FDG-2012-11-11 (Financial Development & Growth)
- NEP-MIG-2012-11-11 (Economics of Human Migration)
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