Do Institutional Quality Matters for International Migration in Developing Countries. A Gravity Model Approach
Author: Muhammad Ilyas Khan

The integral aim of this research work is to investigate the role of institutional quality in bilateral migration for developing countries. For this purpose, we estimate the gravity equation for 60 home and host countries (OECD and NON-OECD) for the time period 2010-2017. All the estimation techniques developed over time, suffered from weakness due to the presence of missing values and unobservable heterogeneity. However, the study employed Pseudo-Poisson Maximum Likelihood (PPML) with FE to overcome the problem of missing data, endogenity and heteroscedasticity. Moreover, this study has taken a novel perspective on the previous literature of examining the determinants of migration. The study utilized the estimated coefficients of gravity equation to investigate the relationship between home and host countries institutional variables and their impact on bilateral migration. The findings reveal that institutional quality is acts as push factor in migration from home to host countries. The study suggests that institutional quality is a good proxy for the factors that trigger migration. We argue that the migration decision depends on the expectations about future income levels, for which institutions serve as meaningful proxies. Additionally, the results confirms that GDP per capita is not played significant role and geographical distance has negative impact on bilateral migration. Supervisor:- Dr. Junaid Ahmed

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Supervisor: Junaid Ahmed

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