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IZA
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Brain Drain and LDCs' Growth: Winners and Losers
by
Michel Beine, Frédéric Docquier, Hillel Rapoport
(July 2003)
new version entitled "Brain drain and human capital formation in developing countries: winners and losers" published in: Economic Journal, 2008, 118 (528), 515-843
Abstract:
We present an empirical evaluation of the growth effects of the brain drain for the source
countries of migrants. Using recent US data on migration rates by education levels
(Carrington and Detragiache, 1998), we find empirical support for the ”beneficial brain drain
hypothesis” in a cross-section of 50 developing countries. At the country-level, we find that
most countries combining low levels of human capital and low migration rates of skilled
workers tend to be positively affected by the brain drain. By contrast, the brain drain appears
to have negative growth effects in countries where the migration rate of the highly educated
is above 20% and/or where the proportion of people with higher education is above 5%.
While the number of winners is smaller, these include nearly 80% of the total population of
the sample.
Text: See Discussion Paper No. 819
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