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Emigration and Democracy

  • Docquier, Frédéric

    ()

    (Université catholique de Louvain)

  • Lodigiani, Elisabetta

    ()

    (University of Luxembourg)

  • Rapoport, Hillel

    ()

    (Paris School of Economics)

  • Schiff, Maurice

    ()

    (World Bank)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5496.

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Length: 49 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5496
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  12. Frederic Docquier & Hillel Rapoport, 2011. "Globalization, brain drain and development," CReAM Discussion Paper Series 1108, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  13. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
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  18. William Hauk & Romain Wacziarg, 2009. "A Monte Carlo study of growth regressions," Journal of Economic Growth, Springer, vol. 14(2), pages 103-147, June.
  19. Frédéric Docquier & Elisabetta Lodigiani & Hillel Rapoport & Maurice Schiff, 2011. "Emigration and democracy," Working Papers 2011-02, Bar-Ilan University, Department of Economics.
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