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Migration and Institutional Development



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.

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

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