Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/214952 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7950
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We empirically investigate the relationship between a country's economic complexity and the diversity in the birthplaces of its immigrants. Our cross-country analysis suggests that birthplace diversity is strongly and positively associated with economic complexity. This holds particularly for diversity among highly educated migrants and for countries at intermediate levels of economic complexity. The results are robust to accounting for previous trends in birthplace diversity as well as to using alternatives diversity measures. We address endogeneity concerns by instrumenting diversity through predicted stocks from a pseudo-gravity model as well as from a standard shift-share approach. Finally, we provide evidence suggesting that birthplace diversity boosts economic complexity by increasing the diversification of the host country's export basket.
Subjects: 
economic complexity
birthplace diversity
immigration
growth
JEL: 
F22
O31
O33
Document Type: 
Working Paper
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