Emigration and democracy

Abstract

International migration is an important determinant of institutions, not considered so far in the empirical growth literature. Using cross-section and panel analysis for a large sample of developing countries, we find that openness to emigration (as measured by the general emigration rate) has a positive effect on home-country institutional development (as measured by standard democracy indices). The results are robust to a wide range of specifications and estimation methods. Remarkably, the cross-sectional estimates are fully in line with the implied long-run relationship from dynamic panel regressions.