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IZA Policy Paper No. 136
December 2017
Deterring Emigration with Foreign Aid: An Overview of Evidence from Low-Income Countries
Michael A. Clemens, Hannah M. Postel

published in: Population and Development Review, 2018, 44 (4), 667-693

In response to the recent migrant and refugee crisis, rich countries have redoubled policy efforts to deter future immigration from poor countries by addressing the "root causes" of migration. We review existing evidence on the effectiveness of such efforts. First, aid disbursements do not generally follow "root causes" rhetoric. The sectoral distribution of aid to migrant-origin countries does not significantly differ from its distribution in other countries. Second, the evidence suggests that aid's capacity to deter migration is small at best. Aid can only encourage economic growth, employment, and security to a limited degree. Beyond this, successful development in almost all formerly-poor countries has produced an increase in emigration. Third, this evidence implies that donors could achieve greater impact by leveraging foreign aid not to deter migration but to shape it for mutual benefit.

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Mark Fallak
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+352 585-855-526
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Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
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Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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