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Immigration and economic growth: do origin and destination matter?

Author

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  • Youngho Kang
  • Byung-Yeon Kim

Abstract

This article assesses the heterogeneous effects of immigration on economic growth depending on both the origin and the destination countries. Following the development of a growth model augmented by human capital of immigrants, we estimate it in a dynamic panel setup using the system-GMM estimator. We find that 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 their advanced knowledge into the developing countries.

Suggested Citation

  • Youngho Kang & Byung-Yeon Kim, 2018. "Immigration and economic growth: do origin and destination matter?," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4968-4984, October.
    • Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4968-4984
    DOI: 10.1080/00036846.2018.1466987
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    Cited by:

    1. Monica RAILEANU SZELES & Corina SAMAN, 2020. "Globalisation, Economic Growth and COVID-19. Insights from International Finance," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 78-92, September.
    2. Claudio Berardino & Dario D’Ingiullo & Donatella Furia & Alfredo Cartone, 2021. "Immigration diversity and regional economic growth," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 863-886, October.
    3. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    4. Aliyu, Shehu Usman Rano & Salissu, Afees & Kale, Oyeyemi, 2024. "Migration and Youth Unemployment in Africa: Implications for the African Continental Free Trade Area," MPRA Paper 121437, University Library of Munich, Germany, revised 22 Jun 2024.
    5. Natalia I. Doré & Aurora A. C. Teixeira, 2023. "Empirical Literature on Economic Growth, 1991–2020: Uncovering Extant Gaps and Avenues for Future Research," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(1), pages 7-37, January.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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