Migration and Institutional Development
AbstractThis paper argues that migration could trigger institutional development in the sending country. It is shown that the existence of rent-seeking institutions not only hinders the adoption of a more efficient technology, it also reinforces itself; while the possibility of migrating to a more advanced economy could trigger both institutional change and adoption of the more efficient technology in the sending country. Moreover, the institution-enhancement effect of migration becomes more likely as the difference in the rewards to productive activities in the two economies becomes greater. Some preliminary historical evidences are also presented.
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Bibliographic InfoPaper provided by Nottingham University Business School Malaysia Campus in its series NUBS Malaysia Campus Research Paper Series with number 2009-08.
Date of creation: Aug 2009
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-MIG-2009-09-26 (Economics of Human Migration)
- NEP-SEA-2009-09-26 (South East Asia)
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