Immigration and Economic Growth: Do Origin and Destination Matter?

Youngho Kang and Byung-Yeon Kim

MPRA Paper from University Library of Munich, Germany

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 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: International migration; Economic Growth (search for similar items in EconPapers)
JEL-codes: C23 F22 J61 O40 (search for similar items in EconPapers)
Date: 2012-06-27
New Economics Papers: this item is included in nep-fdg and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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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:pra:mprapa:39695

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