**TABLE 2. Effect of High-Skilled Emigration Rates on GDP and TFP Differences between Countries (Instrumental Variables Estimations)**

||||Dependent vari|able:**RelGDPi**|**j,t**||||Dependent var|iable:**RelTPFi**|**j,t**||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||_(1)_|_(2)_|_(3)_|_(4)_|_(5)_|_(6)_|_(7)_|_(8)_|_(9)_|_(10)_|_(11)_|_(12)_|
|SMigijt|0.3036*|0.3269***|0.3017**|0.3015***|0.3883*|0.5138**|0.1771**|0.1452***|0.1863**|0.1437***|0.3569***|0.4021***|
|,|(0.1601)|(0.0882)|(0.1532)|(0.0875)|(0.2371)|(0.2064)|(0.0784)|(0.0235)|(0.0734)|(0.0256)|(0.0587)|(0.0703)|
|UMigit1||−0.1677||−0.0672||−0.9417||0.3707||0.3789||−1.0854|
|j,-||(0.3579)||(0.4101)||(0.8753)||(0.4117)||(0.4349)||(0.8486)|
|Other controls|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|
|Origin FE|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|
|Adj._R_<sup>_2_</sup>|0.9430|0.9434|0.9429|0.9431|0.9420|0.9422|0.9547|0.9549|0.9548|0.9549|0.9547|0.9549|
|<br>N|2275|2275|2266|2266|2250|2250|1550|1550|1550|1550|1536|1536|
|F-Test (first stage)|12.57|22.65|12.67|22.69|14.40|16.89|14.46|30.53|14.69|30.00|14.90|16.81|
|J-Test|-|-|0.4611|0.4654|0.1397|0.3187|-|-|0.5060|0.3858|0.8406|0.9022|
|Instruments used|TotalMigij,t-1|TotalMigij,t-1|TotalMigij,t-1+<br>Distij+|TotalMigij,t-1+<br>Distij+|TotalMigij,1960+<br>Disti+|TotalMigij,1960+<br>Disti+|TotalMigij,t-1|TotalMigij,t-1|TotalMigij,t-1+<br>Distij+|TotalMigij,t-1+<br>Distij+|TotalMigij,1960+<br>Disti+|TotalMigij,1960+<br>Disti+|
||||ComLangij+|ComLangij+|ComLangij+|ComLangij+|||ComLangij+|ComLangij+|ComLangij+|ComLangij+|
||||Contigij|Contigij|Contigij|Contigij|||Contigij|Contigij|Contigij|Contigij|
||||||_First stage (p_|_artial correlati_|_ons)_||||||
|TotalMigij,t-1|0.0124***|0.0322***|0.0123***|0.0323***|||0.0184***|0.0437***|0.0187***|0.0438***|||
||(3.7e<sup>−04</sup>)|(7.9e<sup>−04</sup>)|(3.8e<sup>−04</sup>)|(8.0e<sup>−04</sup>)|||(5.8e<sup>−04</sup>)|(0.0010)|(6.0e<sup>−04</sup>)|(0.0010)|||
|TotalMigij1960|||||1.2e<sup>−04</sup>***|1.0e<sup>−04</sup>***|||||3.9e<sup>−04</sup>***|3.2e<sup>−04</sup>***|
|,|||||(1.1e<sup>−05</sup>)|(1.0e<sup>−05</sup>)|||||(3.1e<sup>−05</sup>)|(3.0e<sup>−05</sup>)|
|Distij|||−0.0166***|−0.0217***|−0.0265***|−0.0197***|||−0.0198***|−0.0184***|−0.0365***|−0.0299***|
||||(0.0053)|(0.0045)|(0.0063)|(0.0059)|||(0.0074)|(0.0060)|(0.0091)|(0.0087)|
|ComLangij|||0.0227**|−0.0026|0.0943***|0.0615***|||0.0054|−0.0169*|0.0836***|0.0545***|
||||(0.0108)|(0.0093)|(0.0126)|(0.0120)|||(0.0126)|(0.0102)|(0.0153)|(0.0148)|
|Contigij|||−0.1009***|−0.0537***|−0.0606**|−0.0951***|||−0.1992***|−0.0621**|−0.0736*|−0.1652***|
||||(0.0219)|(0.0189)|(0.0260)|(0.0246)|||(0.0339)|(0.0278)|(0.0416)|(0.0403)|

_Note:_ All dependent variables are expressed in logs and represent relative differences between countries j and i. SMigij,t (UMigij,t-1) denotes the stock of high- (low-) skilled emigrants from country i living in country j divided by the stock of high- (low-) skilled residents in i. All estimations include RelInvestij,t-1, RelUrbanij,t-1, RelPrimSchoolij,t-1 and RelTertSchoolij,t-1 as additional control variables. TotalMigij,t-1, Distij, ComLangij, and Contigij represent the share of the emigrant population from country i living in country j, the distance between i and j, whether i and j share a common language, and whether i and j have a common border, respectively. Table A1 in the appendix provides additional information on all variables and instruments. Robust standard errors are in parentheses and clustered for migration destinations.*** indicates a significance level below 1 percent; ** indicates a significance level between 1 and 5 percent; * indicates a significance level between 5 and 10 percent.

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