This article explores the proposition that the developmental potential of emigration depends on the context of the sending countries. It builds on the insights from the institutional approach to development and adapts them to the migration‐development nexus. It argues that government involvement is necessary if resources from emigration are to become seeds for development. By analysing the case of Romania, one of the largest labour sending countries in Eastern Europe, it argues that its laissez‐faire approach is likely not enough to capitalize on emigrants' resources for development.