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Barriers to Exit

  • Alberto Chong


  • Gianmarco León

Unlike previous empirical studies that focus on barriers to entry in international trade, we focus on barriers to exit as measured by passport costs for a cross-section of countries. We test four common theories on the determinants of such exit barriers and find that macroeconomic and brain-drain explanations do explain high barriers to exit. However, institutional and cultural hypotheses do not appear to be empirically robust explanations of such high barriers. Our findings hold when applying instrumental variables, changes in specification, and changes in cross-country periods.

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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4476.

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Date of creation: Aug 2006
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Handle: RePEc:idb:wpaper:4476
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  1. Miyagiwa, K., 1989. "Scale Economics In Education And The Brain Drain Problem," Working Papers 89-09, University of Washington, Department of Economics.
  2. Juan Botero & Simeon Djankov & Rafael LaPorta & Florencio López-de-Silanes & Andrei Shleifer, . "The Regulation of Labor," Working Paper 19483, Harvard University OpenScholar.
  3. Xavier Sala-i-Martin, 1997. "I just ran four million regressions," Economics Working Papers 201, Department of Economics and Business, Universitat Pompeu Fabra.
  4. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
  5. McKenzie, David, 2007. "Paper Walls Are Easier to Tear Down: Passport Costs and Legal Barriers to Emigration," World Development, Elsevier, vol. 35(11), pages 2026-2039, November.
  6. Manning, Chris, 2001. "The East Asian Economic Crisis and Labour Migration: A Set-Back for International Economic Integration?," Departmental Working Papers 2001-03, The Australian National University, Arndt-Corden Department of Economics.
  7. Hatton, Timothy J., 1993. "A Model of UK Emigration, 1870-1913," CEPR Discussion Papers 771, C.E.P.R. Discussion Papers.
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