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Migration and Institutional Development

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    Abstract

    This 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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    File URL: http://ssrn.com/abstract=1442982
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    Bibliographic Info

    Paper provided by Nottingham University Business School Malaysia Campus in its series NUBS Malaysia Campus Research Paper Series with number 2009-08.

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    Date of creation: Aug 2009
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    Handle: RePEc:nom:nubsmc:2009-08

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    Related research

    Keywords: Migration; Institution; Rent seeking; Allocation of talent; Democratization;

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