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Brain drain and development traps

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Author Info

  • Bénassy, Jean-Pascal
  • Brezis, Elise S.

Abstract

This paper links the two fields of “development traps” and “brain drain”. We construct a model which integrates endogenous international migration into a simple growth model. As a result the dynamics of the economy can feature some underdevelopment traps: an economy starting with a low level of human capital can be caught in a vicious circle where low level of human capital leads to low wages, and low wages leads to emigration of valuable human capital. We also show that our model displays a rich array of different dynamic regimes, including the above traps, but other regimes as well, and we link explicitly the nature of the regimes to technology and policy parameters.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 102 (2013)
Issue (Month): C ()
Pages: 15-22

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Handle: RePEc:eee:deveco:v:102:y:2013:i:c:p:15-22

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Web page: http://www.elsevier.com/locate/devec

Related research

Keywords: Brain drain; Development traps; Human capital; Migration;

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References

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  1. Azariadis, Costas & Stachurski, John, 2005. "Poverty Traps," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 5 Elsevier.
  2. Docquier, Frédéric & Rapoport, Hillel, 2011. "Globalization, Brain Drain and Development," IZA Discussion Papers 5590, Institute for the Study of Labor (IZA).
  3. McKenzie, David & Rapoport, Hillel, 2007. "Self-selection patterns in Mexico-U.S. migration : the role of migration networks," Policy Research Working Paper Series 4118, The World Bank.
  4. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
  5. Frederic Docquier & David de la Croix, 2010. "Do Brain Drain and Poverty Result from Coordination Failures?," 2010 Meeting Papers 440, Society for Economic Dynamics.
  6. Elise Brezis & Ariel Soueri, 2011. "Why do Students Migrate? Where do they Migrate to?," Working Papers 25, AlmaLaurea Inter-University Consortium.
  7. Michel, BEINE & Frédéric, DOCQUIER & Hillel, RAPOPORT, 2006. "Brain drain and human capital formation in developing countries : winners and losers," Discussion Papers (ECON - Département des Sciences Economiques) 2006023, Université catholique de Louvain, Département des Sciences Economiques.
  8. Stark, Oded, 2004. "Rethinking the Brain Drain," World Development, Elsevier, vol. 32(1), pages 15-22, January.
  9. Mountford, Andrew & Rapoport, Hillel, 2011. "The brain drain and the world distribution of income," Journal of Development Economics, Elsevier, vol. 95(1), pages 4-17, May.
  10. Elise S. Brezis & Paul Krugman, 1993. "Immigration, Investment and Real Wages," NBER Working Papers 4563, National Bureau of Economic Research, Inc.
  11. Gibson, John & McKenzie, David, 2010. "The Economic Consequences of "Brain Drain" of the Best and Brightest: Microeconomic Evidence from Five Countries," IZA Discussion Papers 5124, Institute for the Study of Labor (IZA).
  12. Oded Stark & Christian Helmenstein & Alexia Prskawetz, 1998. "Human Capital Depletion, Human Capital Formation, and Migration: A Blessing in a "Curse"?," Departmental Working Papers _096, Chinese University of Hong Kong, Department of Economics.
  13. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  14. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
  15. Docquier, Frederic & Lowell, B. Lindsay & Marfouk, Abdeslam, 2008. "A gendered assessment of the brain drain," Policy Research Working Paper Series 4613, The World Bank.
  16. Azariadis, Costas & Drazen, Allan, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 105(2), pages 501-26, May.
  17. Gibson, John & McKenzie, David, 2011. "Eight Questions about Brain Drain," IZA Discussion Papers 5730, Institute for the Study of Labor (IZA).
  18. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
  19. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  20. Kwok, Viem & Leland, Hayne, 1982. "An Economic Model of the Brain Drain," American Economic Review, American Economic Association, vol. 72(1), pages 91-100, March.
  21. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
  22. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, vol. 53(2), pages 287-303, August.
  23. repec:ecj:econjl:v:122:y:2012:i::p:339-375 is not listed on IDEAS
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Citations

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Cited by:
  1. Elise S. Brezis & Ariel Soueri, 2013. "Mobility of Students and Quality of Higher Education: An Empirical Analysis of the “Unified Brain Drain” Model," Working Papers 2013-11, Department of Economics, Bar-Ilan University.
  2. Elise S. Brezis & Ariel Soueri, 2012. "Globalization and Migration: A “Unified Brain Drain” Model," Working Papers 2012-15, Department of Economics, Bar-Ilan University.

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