Reinforcing Effect of Terrorism and Corruption Nexus on Net Migration from Developing Countries: An Empirical Analysis

Abstract The study intends to investigate the direct and indirect effect of terrorism and corruption on net migration for thirty-eight developing countries, along with other macroeconomic determinants like per capita GDP, globalization, inflation and institutional quality for the time period 1985-2015. Based on the Fixed and Random Effects models, findings show that terrorism and GDP per capita has negative while globalization has positively significant effect on the net migration in selected developing countries. The corruption and terrorism appeared to reinforcing each other in stimulating migration. Particularly, terrorism seeks its ways through corrupt financial activities which distorts the labor market and ultimately results in relatively large out-migration. The study suggests implementation of stiff anti-terrorism policies to improve domestic environment along with promoting globalization in such a way which can offer positive effect of out-migration on the domestic economy in the long run. And that is expected to take place at the onset of return migration of labor with enhanced skills and capabilities.