TY - JOUR
T1 - Brain drain and economic growth
T2 - Theory and evidence
AU - Beine, Michel
AU - Docquier, Frédéric
AU - Rapoport, Hillel
PY - 2001
Y1 - 2001
N2 - We focus on the impact of migration prospects on human capital formation and growth in a small, open developing economy. We assume that agents are heterogeneous in skills and take their educational decisions in a context of uncertainty regarding future migrations. We distinguish two growth effects: an ex ante "brain effect" (migration prospects foster investments in education because of higher returns abroad), and an ex post "drain effect" (because of actual migration flows). The case for a beneficial brain drain (BBD) emerges when the first effect dominates, i.e., when the average level of human capital is higher in the economy opened to migrations than in the closed economy. We derive the theoretical conditions required for such a possibility to be observed. Using cross-section data for 37 developing countries, we find that the possibility of a BBD could be more than a theoretical curiosity.
AB - We focus on the impact of migration prospects on human capital formation and growth in a small, open developing economy. We assume that agents are heterogeneous in skills and take their educational decisions in a context of uncertainty regarding future migrations. We distinguish two growth effects: an ex ante "brain effect" (migration prospects foster investments in education because of higher returns abroad), and an ex post "drain effect" (because of actual migration flows). The case for a beneficial brain drain (BBD) emerges when the first effect dominates, i.e., when the average level of human capital is higher in the economy opened to migrations than in the closed economy. We derive the theoretical conditions required for such a possibility to be observed. Using cross-section data for 37 developing countries, we find that the possibility of a BBD could be more than a theoretical curiosity.
KW - Brain drain
KW - Growth
KW - Human capital formation
KW - Migration
UR - http://www.scopus.com/inward/record.url?scp=0035125095&partnerID=8YFLogxK
U2 - 10.1016/S0304-3878(00)00133-4
DO - 10.1016/S0304-3878(00)00133-4
M3 - Article
AN - SCOPUS:0035125095
SN - 0304-3878
VL - 64
SP - 275
EP - 289
JO - Journal of Development Economics
JF - Journal of Development Economics
IS - 1
ER -