Migration and Institutional Development

Baochun Peng ()
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Baochun Peng: Nottingham University Business School - Malaysia Campus

No 2009-08, NUBS Malaysia Campus Research Paper Series from Nottingham University Business School Malaysia Campus

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.

Keywords: Migration; Institution; Rent seeking; Allocation of talent; Democratization (search for similar items in EconPapers)
Date: 2009-08
New Economics Papers: this item is included in nep-mig and nep-sea
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