Kang, Youngho and Kim, Byung-Yeon (2012): Immigration and Economic Growth: Do Origin and Destination Matter?
Download (463kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Immigration and Economic Growth: Do Origin and Destination Matter?|
|Keywords:||International migration;Economic Growth;|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J61 - Geographic Labor Mobility ; Immigrant Workers
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||Youngho Kang|
|Date Deposited:||27. Jun 2012 14:55|
|Last Modified:||07. Sep 2015 13:16|
Arellano, M., Bover, O., 1995. “Another Look at Instrumental Variable Estimation of Error Component Models,” Journal of Econometrics 68, 29–51.
Altonji, J. and D. Card (2001), “The Effects of Immigration on the Labor Market Outcomes of Less–skilled Natives,” in Abowd J. and R. Freeman (eds.) “Immigration trade and the labor market”, Chicago: University of Chicago Press.
Andersen, T.B. and C. Dalgaard (2011), “Flow of People, Flows of Ideas, and the Inequality of Nations,” Journal of Economic Growth, Vol. 16(1), pp. 1–32.
Arellano, M. and S. Bond (1991), “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,” Review of Economic Studies, Vol. 58(2), pp. 277–297.
Beine M., F. Docquier and C. Ozden (2009), “Diasporas,” CESifo working paper No.2607.
Bellini E., Ottaviano G.I.P, Pinelli D. and G. Prarolo (2009) "Cultural Diversity and Economic Performance: evidence from European Regions," Working paper 2009.63 Fondazione Enrico Mattei.
Berthelemy J., M. Beuran, and M. Maurel (2009), “Aid and Migration: Substitutes or Complements?” World Development, Vol. 37(10), pp. 1589–1599.
Blundell, R. W. and S. R. Bond (1998), “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models,” Journal of Econometrics, Vol. 87(1), pp. 115–143.
Bowsher, C. (2002), “On Testing Overidentifying Restrictions in Dynamic Panel Data Model,” Economics Letters, Vol. 77(2), pp. 211–220.
Coe, D. T. and E. Helpman (1995), “International R&D Spillovers”, European Economic Review, Vol. 39(5), pp. 859–887.
Collier, P. and A. Hoeffler (2011), “Quantitative Analysis of Determinants of International Migration,” Analysis commissioned as part of the UK Government’s Foresight Project on Migration and Global Environmental Change, http://www.bis.gov.uk/assets/foresight/docs/migration/drivers/11-1180-dr10-quantative-determinants-of-international-migration.pdf (as current of June 22 2012)
Cortes P. (2008), “The Effects of Low-skilled Immigration on US Prices: Evidence from CPI Data,” Journal of Political Economy, Vol. 116(3), pp. 381–422.
Dolado, J., A. Goria, and A. Ichino (1993), “Immigration, Human Capital and Growth in the Host Country: Evidence from Pooled Country Data,” Journal of Population Economics, Vol. 7(2), pp. 193–215.
Felbermayr, G., S. Hiller and D. Sala (2008), “Does Immigration Boost Per Capita Income?” Economics Letters, Vol. 107(2), pp. 177–179.
Hovhannisyan, Nune and Wolfgang Keller (2010), “International Business Travel: An Engine of Innovation?” CEPR Discussion Paper No.7829.
Lee, K., and B. Kim (2009). “Both Institutions and Policies Matter but Differently at Different Income Groups of Countries: Determinants of Long–Run Economic Growth Revisited,” World Development 37(3), 533–549.
Lundborg, P. and Segerstrom, P. (2000), “International Migration and Growth in Developed Countries: A theoretical analysis,” Economica, Vol. 67, pp. 579–604.
Lundborg, P. and Segerstrom, P. (2002), “The Growth and Welfare Effects of International Mass Migration,” Journal of International Economics, Vol. 56, pp. 177–204.
Mankiw, G., D. Romer and D. Weil (1992), “A Contribution to the Empirics of Economic Growth,” Quarterly Journal of Economics, Vol. 107(2), pp. 407–437.
Mayda, A. M. (2010), “International Migration: A Panel Data Analysis of the Determinants of Bilateral Flows,” Journal of Population Economics, 23(4), 1249–1274.
Mayer and Zignago (2011), “Notes on CEPII’s Distances Measures (GeoDist),” CEPII working paper 2011–25.
Nickell, S., (1981), “Biases in Dynamic Models with Fixed Effects,” Econometrica, 49, 1417–26.
Orefice, G. (2011), “Skilled Migration and Economic Performances: Evidence from OECD Countries”, Swiss Journal of Economics and Statistics, Vol. 146(4). pp. 781–820.
Ortega F. and G. Peri, (2009), "The Causes and Effects of International Migration: Evidence from OECD Countries 1980–2005," NBER Working Papers No.14833.
Silva, S. and S. Tenreyro (2006), “The Log of Gravity,” Review of Economics and Statistics, Vol. 88(4), pp. 641–658.
Spolaore, E. and R. Wacziag (2010), “The Diffusion of Development,” Quarterly Journal of Economics, Vol. 124(2), pp. 469–529.
Windmeijer, F. (2005), “A Finite Sample Correction for the Variance of Linear Two-step GMM Estimator,” Journal of Econometrics, Vol. 126(1), pp. 25–51.