Does Institutional Quality Matter for International Migrants in Their Home and Host Country? A Case of Russian Federation

Abstract

Poor institutions have been identified to hinder economic growth and development, with negative social and economic effects such as skilled human resource emigration. In a resource-rich economy, a poor institutional framework has been stated to be a key cause of resource curse. The current study used the CIS and other bordering countries to investigate the impact of both home and destination country institutional quality on migration flows to the Russian Federation. Is the Quality of Institutions (Origin and Host Countries) Important in Migration? The study demonstrated that institutional quality matters for migration from surrounding countries using a gravity-based model estimated using the Poisson Pseudo Maximum Likelihood (PPML). Population, unemployment, and GDP per capita were identified as push factors. In addition, the study discovered a correlation between the institutional quality of the host country and the inward migration flow. Therefore, the study recommends enhancing the institutional quality of the host country to increase the positive effects of inward migration flow. © Valei A., Mamman S.O., 2022.