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Does Immigration Impact Economic Freedom?

Clark, Jeff R. and Lawson, Robert A. and Nowrasteh, Alex and Powell, Benjamin W. and Murphy, Ryan H, Does Immigration Impact Economic Freedom? (August 18, 2014). Available for download at SSRN:

The economics literature generally finds a positive, but small, gain in income to native-born populations from immigrants and potentially large gains in world incomes. But immigrants can also impact a recipient nation’s institutions. A growing empirical literature supports the importance of strong private property rights, a rule of law, and an environment of economic freedom for promoting long run prosperity. Comparatively little work has tried to explain economic freedom as a dependent variable. This paper empirically examines how immigration impacts a region’s policies and institutions. We find small but positive increases in institutional quality as a result of immigration.”

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