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The Impact of the Fiscal Competition on the Migration in The European Union

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  • Raluca Dacea
  • Cristian Stanciu
  • Narcis Eduard Mitu

Abstract

The paper deals with the brain drain phenomenon (rational minds migration), displayed inside the European Union, in close correlation with European tax competition. Speciality literature from the countries of the European Union deals with great responsibility the migration process of the specialists, numerous studies being dedicated to this phenomenon. Through the present paper we aim to study this correlation and the evaluation of the implications for the member states of the European Union, by elaborating a model by means of which there are tested the correlations between different variables and the quantification of the taxation effects upon the brain drain phenomenon. The model is an adaptation of the so-called ”Model of the Brain Drain and human capital formation” elaborated by Mountford (1997) by which there are described the different researched variables: brain gain, brain drain, migration competition and tax competition. Obviously, the scenarios may be different from country to country depending on the different values of the two key factors taken into account: migration probability and considerable differences of technological capacity.

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File URL: http://www.ersj.eu/repec/ers/papers/08_4_p9.pdf
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Bibliographic Info

Article provided by European Research Studies Journal in its journal European Research Studies Journal.

Volume (Year): XI (2008)
Issue (Month): 4 ()
Pages: 101-110

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Handle: RePEc:ers:journl:v:xi:y:2008:i:4:p:101-110

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Related research

Keywords: brain drain; fiscal competition; emigration competition;

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  1. P. Giannoccolo, 2003. "Brain Drain and Fiscal Competition. A theoretical model for the Europe," Working Papers 481, Dipartimento Scienze Economiche, Universita' di Bologna.
  2. Pierpaolo Giannoccolo, 2005. ""Brain Drain Competition" Policies in Europe: a Survey," Working Papers 20060201, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica, revised Feb 2006.
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