How Mass Immigration Affects Countries with Weak Economic Institutions : A Natural Experiment in Jordan
To what extent does immigration affect the economic institutions in destination countries? While there is much evidence that economic institutions in developed nations are either unaffected or improved after immigration, there is little evidence of...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/944551555006432470/How-Mass-Immigration-Affects-Countries-with-Weak-Economic-Institutions-A-Natural-Experiment-in-Jordan http://hdl.handle.net/10986/31559 |
| Summary: | To what extent does immigration affect
the economic institutions in destination countries? While
there is much evidence that economic institutions in
developed nations are either unaffected or improved after
immigration, there is little evidence of how immigration
affects the economic institutions of developing countries
that typically have weaker institutions. Using the Synthetic
Control Method, this study estimates a significant and
long-lasting positive effect on Jordanian economic
institutions from the surge of refugees from the First Gulf
War. The surge of refugees to Jordan in 1990–1991 was
massive and equal to 10 percent of Jordan's population
in 1990. Importantly, these refugees were able to have a
large and direct impact on Jordanian economic institutions
because they could work, live, and vote immediately upon
entry due to a quirk in Jordanian law. The refugee surge was
the main mechanism by which Jordan's economic
institutions improved in the decades that followed. |
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