Immigration and Economic Growth: Do Origin and Destination Matter?

Youngho Kang and Byung-Yeon Kim

No 2012-01, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: This paper assesses the heterogeneous effects of immigration on economic growth depending on both the origin and the destination countries. Following the development of a simple growth model augmented by the embodied human capital of immigrants, we estimate the growth equation using both a gravity-style instrument variable approach and the dynamic system-GMM estimator. We find that immigration from developed economies positively affects the economic growth of the host countries. Furthermore, the growth-enhancing effect of immigration is significantly larger when immigration flows from developed to developing economies than when it does to those that include both developed and developing economies. We interpret these results as evidence of immigrants from developed countries bringing with them - upon entry - their advanced knowledge on technology and institutions into the developing countries that host them.

Keywords: Immigration; economic growth; human capital; institutions (search for similar items in EconPapers)
JEL-codes: F22 O15 O41 O43 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2012-07
New Economics Papers: this item is included in nep-dem, nep-fdg and nep-mig
Note: July 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/28438/wp2012-1.pdf

Related works:
Journal Article: Immigration and economic growth: do origin and destination matter? (2018)
Working Paper: Immigration and Economic Growth: Do Origin and Destination Matter? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hitcei:2012-01

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