Does Immigration Impact Institutions?

The Determinants of Economic Freedom: A Survey

“…Three papers look at how immigrants might be impacting the economic freedom of the nations to which they are moving. Clark et al () found that countries with greater existing immigrant populations or those absorbing more immigrants in previous years, had, if anything, higher levels of economic freedom.…”

Aggregate demand shortfalls and economic freedom

“…A recent literature has appeared exploring the empirical causes of changes in economic freedom, as opposed to using economic freedom as an explanatory variable. Among these are certain crises, including financial crises (de Haan et al 2009;Bologna and Young 2015), war (O'Reilly and Powell 2015), migration (Clark et al 2015;Hall 2015), as well as its relationship with several standard international explanatory variables (March et al 2017). de Haan et al (2009 is the closest to our analysis, as they find that output gaps have a negative impact on economic freedom; Rode and Revuelta (2015) find negative effects of populist politicians on economic freedom, a secondary component of the hypothesis.…”

How Mass Immigration Affects Countries with Weak Economic Institutions: A Natural Experiment in Jordan

“…Much research has subsequently examined how immigration affects economic institutions in destination countries. Clark et al (2015) find a positive and statistically significant relationship between both initial stocks and flows of immigrants with improvement in the economic freedom score from 1990 to 2011. Clemens and Pritchett built a novel epidemiological model that assumes immigrants bring stagnation factors with them, finding no real-world impact (Clemens and Pritchett 2019).…”