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What are migrants willing to pay for better home country institutions?

Author

Listed:
  • Ngoc Thi Minh Tran

    (University of Waikato
    Vietnam National University Ho Chi Minh City)

  • Michael P. Cameron

    (University of Waikato
    University of Waikato)

  • Jacques Poot

    (University of Waikato
    Vrije Universiteit Amsterdam)

Abstract

We conduct a contingent valuation investigation of the preference of international migrants for better home country institutional quality. Our study uses contingent valuation questions in a survey of 1.6% of Vietnamese adult migrants living in New Zealand (NZ) in 2016 to establish the compensating differentials that make those migrants indifferent between residing in NZ and returning to Viet Nam (VN) in hypothetical scenarios. We find that the estimated willingness to pay for an incremental unit improvement in institutional quality in VN is, on average, about NZD 80 per week (approximately 33% of the average weekly wage in VN in PPP terms for the same period), and positively associated with the respondents’ age and the perceived importance of institutional quality in VN to their repatriation intentions. This study underscores the importance of institutional quality to migration decisions by showing that migrants are willing to trade-off part of their regular income for better home country institutional quality.

Suggested Citation

  • Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2019. "What are migrants willing to pay for better home country institutions?," Letters in Spatial and Resource Sciences, Springer, vol. 12(3), pages 257-268, December.
    • Handle: RePEc:spr:lsprsc:v:12:y:2019:i:3:d:10.1007_s12076-019-00240-2
    DOI: 10.1007/s12076-019-00240-2
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    References listed on IDEAS

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    1. Thierry Baudassé & Rémi Bazillier & Ismaël Issifou, 2018. "Migration And Institutions: Exit And Voice (From Abroad)?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 727-766, July.
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    Cited by:

    1. Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2021. "Perception of Institutional Quality Difference and Return Migration Intention: The Case of the Vietnamese Diaspora," RF Berlin - CReAM Discussion Paper Series 2114, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).

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    More about this item

    Keywords

    Return migration; Institutional quality; Contingent valuation method; Willingness to pay; Viet Nam;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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