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Pushed by Poverty or by Institutions? Determinants of Global Migration Flows

Author

Listed:
  • Bergh, Andreas

    (Research Institute of Industrial Economics (IFN))

  • Mirkina, Irina

    (Lund University)

  • Nilsson, Therese

    (Research Institute of Industrial Economics (IFN))

Abstract
The existing literature on determinants of migration flows typically claims that income differences across countries should be a pushing factor for people's movement. We suggest that institutional quality is a better proxy for the factors that trigger migration. People may well want to stay in or move to relatively poor countries if institutions are good, partly because good institutions have an intrinsic value for people and partly because good institutions may be a sign of future economic growth. In contrast, low income and absolute poverty work both as push-factors and as credit constraints, so that people may want to leave, but few can afford to migrate when poverty is high. We test our hypotheses using new data on bilateral migration flows from Abel and Sander (2014), the Worldwide Governance Indicators and the World Bank data on headcount poverty, using a migration gravity model with a spatial specification. Controlling for both source and destination income levels, we find that institutional quality matters significantly for migration. Poor institutions act as a push factor, while absolute poverty in a country of origin limits migration. We also find that omitting spatial factors biases the effect of institutions upwards.

Suggested Citation

  • Bergh, Andreas & Mirkina, Irina & Nilsson, Therese, 2015. "Pushed by Poverty or by Institutions? Determinants of Global Migration Flows," Working Paper Series 1077, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1077
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    References listed on IDEAS

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    3. Tadesse Soka Gignarta & ZhenZhong Guan & Dinkneh Gebre Borojo, 2020. "The Impacts of Economic Freedom and Institutional Quality on Migration from African Countries," South African Journal of Economics, Economic Society of South Africa, vol. 88(3), pages 242-266, September.
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    7. Michel Beine & Joël Machado & Ilse Ruyssen, 2020. "Do potential migrants internalize migrant rights in OECD host societies?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1429-1456, November.
    8. Kuhnt, Jana, 2019. "Literature review: drivers of migration. Why do people leave their homes? Is there an easy answer? A structured overview of migratory determinants," IDOS Discussion Papers 9/2019, German Institute of Development and Sustainability (IDOS).
    9. Megan V. Teague & Virgil Henry Storr & Rosemarie Fike, 2020. "Economic freedom and materialism: an empirical analysis," Constitutional Political Economy, Springer, vol. 31(1), pages 1-44, March.
    10. Martin Guzi & Štěpán Mikula, 2022. "Reforms that keep you at home: The effects of economic transition on migration," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(2), pages 289-310, April.
    11. Gildas Kadoukpè Magbondé, 2021. "How Sub-Saharan African Countries Students Choose Where to Study Abroad: The Case of Benin," Social Inclusion, Cogitatio Press, vol. 9(1), pages 278-287.

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    More about this item

    Keywords

    Global migration; Institutions; Poverty; Gravity model; Spatial analysis;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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