Teymur Rahmani; Morteza Mazaheri Marbori
Volume 5, Issue 17 , December 2014, , Pages 74-61
Abstract
Migration of highly talented people (brain drain) has increased sharply in recent decades. In the past, it was supposed that brain drain just had negative effects on the origin countries. But, it is confirmed now that migration might have positive effects on those countries, too.We examine the effects ...
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Migration of highly talented people (brain drain) has increased sharply in recent decades. In the past, it was supposed that brain drain just had negative effects on the origin countries. But, it is confirmed now that migration might have positive effects on those countries, too.We examine the effects of the brain drain on the formation of human capital and economic growth of the origin countries (developing countries) during 1975 to 2000 by using panel data method. Our results show that the prospect of migration has a positive and significant effect on the formation of human capital via the incentive mechanism. On the other hand, the direct effect of migration of highly educated people on human capital accumulation of the country of origin is negative. Our findings imply that those opposite effects cancel out each other. Therefore, the net effect of migration on human capital accumulation is zero. Also, we examine the effect of brain drain on economic growth in the country of origin. Our findings indicate that migration of skilled or highly educated people has a negative and significant effect on the economic growth of those countries. So, our results do not imply a brain gain for sending countries.
Seyed Komail Tayebi; Mostafa Emadzadeh; Hajar Rostami
Volume 1, Issue 2 , January 2012, , Pages 94-71
Abstract
The process of skilled international migration from developing countries to developed ones has considerably grown during two recent decades. In 1970s, most economists agreed brain drain resulted in reducing human capital stock and thus hurt developing economies. However, according to the studies of the ...
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The process of skilled international migration from developing countries to developed ones has considerably grown during two recent decades. In 1970s, most economists agreed brain drain resulted in reducing human capital stock and thus hurt developing economies. However, according to the studies of the recent decades, positive effects of brain drain on the source economies have been controversial. In this paper, it is tried to explore the effect of brain drain on economic growth of source developing countries. More than 90 percent of skilled emigrants of the world live in 30 of OECD countries, while more than 90 percent out of this live in the U.S., England, Canada, German, Australia and France. Accordingly, this paper explores the effect of brain drain on economic growth of 79 developing countries where skilled people have immigrated to the target countries during 1991 to 2004. To this purpose, the paper has examined the effect by specifying a panel growth regression model. The empirical results have shown that the effect of brain drain on human capital stock of the source countries has been negative and significant, while its direct effect on the economic growth of such countries has not been statistically significant. It implies that brain drain reduces the economic growth of the selected developing countries by reducing their human capital stock.
