The effects of development on migration: Theoretical issues and new empirical evidence

Abstract.

Empirical research on the determinants of emigration from the LDCs has so far given little emphasis to the complex relationship of development and migration. Since the beginning of the 1990s several arguments have been put forth which hint at the possibility that in the early stages of development economic progress might lead to more migration, even if income differentials to the potential destination regions decrease. This paper presents these arguments and tests them for the case of migration to Germany from 86 Asian and African countries from 1981 to 1995. The results confirm the importance of financial restrictions on migration, migration networks, and changes in the societal structure of the sending countries as well as the existence of a home preference. The estimations also control for the political situation in the home countries and for institutional measures in the host country.