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Attempts Do No Harm 7: 4. Institutions, policies, and economic growth Suppose you are contemplating emigrating from your home country to the fictional country

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Attempts Do No Harm 7: 4. Institutions, policies, and economic growth Suppose you are contemplating emigrating from your home country to the fictional country of Flaxon. Flaxon has the same policies and institutions as your home country except it has less honesty and dedication in the enforcement of contracts. Also, your home country has fewer and politically weaker special-interest groups than Flaxon. If you base your decision to emigrate solely on the prospects for economic growth, you would After you make your decision, the easternmost province of Flaxon secedes from the rest of the country to form East Flaxon. East Flaxon plans to retain all the policies and institutions of Flaxon except that East Flaxon will have greater openness to international trade. Again, If you based your decision to attractive emigration destination than Flaxon. emigrate solely on prospects for economic growth, East Flaxon would be a

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