Institutions, policies, and economic growth Suppose you are contemplating emigrating from your home country to the fictional country of Klaxon

Suppose you are contemplating emigrating from your home country to the fictional country of Klaxon. Klaxon has the same policies and institutions as your home country, except it has a government with less power to confiscate private property. Also, your home country has higher marginal tax rates than Klaxon. If you base your decision to emigrate solely on the prospects for economic growth, you would emigrate to Klaxon.
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After you make your decision, the easternmost province of Klaxon secedes from the rest of the country to form East Klaxon. East Klaxon plans to retain all the policies and institutions of Klaxon, except that East Klaxon will have greater openness to international trade. Again, if you based your decision to emigrate solely on prospects for economic growth, East Klaxon would be a more attractive emigration destination than Klaxon.

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Explanation:

If the decision to emigrate is purely based on economic growth prospects, a country with fair property rights and lower marginal tax rates is more attractive. If the government is fair on property rights, no one can confiscate our property without valid legal reasons. Similarly, a lower marginal tax rate means more disposable income.

Further, greater openness to international trade implies higher standards of living and better product quality and variety. Thus, such a country would be a good destination to emigrate to.