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Emigration and democracy

  • Frederic Docquier

    ()

    (FNRS and IRES, Universite Catholique de Louvain)

  • Elisabetta Lodigiani

    ()

    (CREA, Universite 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 find 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, significant 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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Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1102.

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Date of creation: Jan 2011
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Handle: RePEc:crm:wpaper:1102
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