Do countries that recognize dual citizenship have healthier economies? Evidence from the Economic Community of West African States

Abstract

This paper examines whether countries in the Economic Community of West African States that recognize dual citizenship tend to have healthier economies than countries that do not. The study focuses on the Economic Community of West African States diaspora that migrated to the Organization for Economic Co-operation and Development countries. I estimate a random effects model using data from a range of sources. I find countries that recognize dual citizenship increases foreign direct investment, gross capital formation, and household consumption by US$63.9 million, US$578 million, and US$2.27 billion, respectively. Also, countries that recognize dual citizenship are more effective in improving child survival. These results are robust after controlling for several variables that capture external pressure from the diaspora community. Hence, countries that recognize dual citizenship help its diaspora population to transfer vital resources from destination country to origin country which generates sustainable economic growth and development. I emphasize that my identification strategy reveals association, and therefore my findings should not be interpreted as causal.