Emigration and origin country's institutions: does the destination country matter?

Abstract

This paper examines the influence of international migration on the evolution of the quality of institutions in the home country. It focuses on the potential difference in the impact depending on the status of the destination country (i.e. former colonizer, economic power and political power). It also examines whether the impact depends on the quality of institutions in the host country. The results show that the status and the quality of institutions of the country of destination matter and that while emigration to former colonizers has no effect on the quality of institutions in the origin country, emigration to economically or politically powerful countries has a positive feedback on the quality of institutions in the home country.

Keywords:

• institutions
• emigration
• host country's status

JEL Classifications:

• F22
• J24
• J61
• J64

Acknowledgements

The authors acknowledge financial support from the ERF. They are grateful to two anonymous referees for very constructive comments. The paper has also benefited from comments and suggestions by Fréderic Docquier, Abdeslam Marfouk and participants to the ERF conferences in Istanbul and Beirut. The usual disclaimer applies