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Immigration's Effect on Institutional Quality: The Place of Simpler Evidence

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  • Garett Jones
  • Ryan Fraser

Abstract

On critical topics economists often begin their inquiries with scatterplots and correlations. Such simpler forms of evidence have been wanting on whether greater immigration from relatively poor and corrupt countries predicts changes in institutional quality. Some researchers report the relationship between immigration and institutional quality while controlling for multiple measures of institutional quality—plausible cases of overcontrol bias. We follow a simpler approach, using the data set from a 2019 article in Southern Economic Journal. Among other results, we find that over the 1995 to 2015 period, higher rates of immigration from relatively poorer or more corrupt countries have a statistically significant −0.4 Spearman rank correlation and −0.3 Kendall rank correlation with changes in economic freedom.

Suggested Citation

  • Garett Jones & Ryan Fraser, 2021. "Immigration's Effect on Institutional Quality: The Place of Simpler Evidence," Econ Journal Watch, Econ Journal Watch, vol. 18(1), pages 1-3–20, March.
    • Handle: RePEc:ejw:journl:v:18:y:2021:i:1:p:3-20
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    References listed on IDEAS

    as
    1. Dimant Eugen & Redlin Margarete & Krieger Tim, 2015. "A Crook is a Crook . . . But is He Still a Crook Abroad? On the Effect of Immigration on Destination-Country Corruption," German Economic Review, De Gruyter, vol. 16(4), pages 464-489, December.
    2. J. Clark & Robert Lawson & Alex Nowrasteh & Benjamin Powell & Ryan Murphy, 2015. "Does immigration impact institutions?," Public Choice, Springer, vol. 163(3), pages 321-335, June.
    3. Joshua C. Hall, 2016. "Institutional convergence: exit or voice?," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 40(4), pages 829-840, October.
    4. Eugen Dimant & Tim Krieger & Margarete Redlin, 2015. "A Crook is a Crook … But is He Still a Crook Abroad? On the Effect of Immigration on Destination-Country Corruption," German Economic Review, Verein für Socialpolitik, vol. 16(4), pages 464-489, November.
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    More about this item

    Keywords

    migration; institutions; methodology;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General

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