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Emigration and democracy

  • Frédéric Docquier

    (FNRS and IRES, Université Catholique de Louvain)

  • Elisabetta Lodigiani

    (CREA, Université du Luxembourg; and Centro Studi Luca d'Agliano)

  • Hillel Rapoport

    ()

    (CID, Harvard University; Bar-Ilan University; and EQUIPPE)

  • Maurice Schiff

    (World Bank, Development Economics Research Group)

Migration is an important and yet neglected determinant of institutions. The paper documents the channels through which emigration affects home country institutions and considers dynamic-panel regressions for a large sample of developing countries. We fi nd that emigration and human capital both increase democracy and economic freedom. This implies that unskilled (skilled) emigration has a positive (ambiguous) impact on institutional quality. Simulations show an impact of skilled emigration that is generally positive, signi cant for a few countries in the short run and for many countries in the long run once incentive effects of emigration on human capital formation are accounted for.

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File URL: http://www.biu.ac.il/soc/ec/wp/2011-02.pdf
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Paper provided by Bar-Ilan University, Department of Economics in its series Working Papers with number 2011-02.

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Date of creation: Feb 2011
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Handle: RePEc:biu:wpaper:2011-02
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