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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 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 Centro Studi Luca d'Agliano, University of Milano in its series Development Working Papers with number 307.

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Length: 48
Date of creation: 09 May 2011
Date of revision: 09 May 2011
Handle: RePEc:csl:devewp:307
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