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Migration and Institutional Development

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Abstract

This paper argues that migration could trigger institutional development in the sending country. It is shown that the existence of rent-seeking institutions not only hinders the adoption of a more efficient technology, it also reinforces itself; while the possibility of migrating to a more advanced economy could trigger both institutional change and adoption of the more efficient technology in the sending country. Moreover, the institution-enhancement effect of migration becomes more likely as the difference in the rewards to productive activities in the two economies becomes greater. Some preliminary historical evidences are also presented.

Suggested Citation

  • Baochun Peng, 2009. "Migration and Institutional Development," NUBS Malaysia Campus Research Paper Series 2009-08, Nottingham University Business School Malaysia Campus.
  • Handle: RePEc:nom:nubsmc:2009-08
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    File URL: http://ssrn.com/abstract=1442982
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    Keywords

    Migration; Institution; Rent seeking; Allocation of talent; Democratization;

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