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A Crook is a Crook ... But is He Still a Crook Abroad? On the Effect of Immigration on Destination-Country Corruption

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  • Eugen Dimant
  • Tim Krieger
  • Margarete Redlin

Abstract

This paper analyzes the impact of migration on destination-country corruption levels. Capitalizing on a comprehensive dataset consisting of annual immigration stocks of OECD countries from 207 countries of origin for the period 1984-2008, we explore different channels through which corruption might migrate. We employ different estimation methods using Fixed Effects (FE) and Tobit regressions in order to validate our findings. Moreover, we also address the issue of endogeneity by using the Difference-Generalized Method of Moments (GMM) estimator. Independent of the econometric methodology, we consistently find that while general migration has an insignificant effect on the destination country’s corruption level, immigration from corruption-ridden origin countries boosts corruption in the destination country. Our findings provide a more profound understanding of the socio-economic implications associated with migration flows.

Suggested Citation

  • Eugen Dimant & Tim Krieger & Margarete Redlin, 2014. "A Crook is a Crook ... But is He Still a Crook Abroad? On the Effect of Immigration on Destination-Country Corruption," CESifo Working Paper Series 5032, CESifo.
    • Handle: RePEc:ces:ceswps:_5032
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    More about this item

    Keywords

    corruption; migration; impact of migration;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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