IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v43y2011i18p2277-2285.html
   My bibliography  Save this article

Remittances or technological diffusion: which drives domestic gains from brain drain?

Author

Listed:
  • Thanh Le
  • Philip Bodman

Abstract

This article examines the impact of technological diffusion and international migrants' remittances on the economic development of less-developed countries. The hypothesis that skilled workers, living and working overseas, can effectively channel technological knowledge back to their home country, which in turn contributes to that country's economic growth, is tested utilizing data on the stock of high-skilled workers from 50 developing countries working in industrialized countries over the last two decades. Results obtained lend strong support to this hypothesis. In addition, the effect that remittances from workers in developed countries, which are used for investment purposes in developing countries, have on the rate of growth of those developing economies is investigated. Our empirical evidence indicates that this remittance channel exerts a significant, positive impact on growth, although quantitatively the contribution of such investment-oriented remittances in driving sustainable economic development appears to be somewhat smaller than that of more general technological diffusion.

Suggested Citation

  • Thanh Le & Philip Bodman, 2011. "Remittances or technological diffusion: which drives domestic gains from brain drain?," Applied Economics, Taylor & Francis Journals, vol. 43(18), pages 2277-2285.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2277-2285
    DOI: 10.1080/00036840903153838
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153838
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840903153838?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shahbaz, Muhammad & Song, Malin & Ahmad, Shabbir & Vo, Xuan Vinh, 2022. "Does economic growth stimulate energy consumption? The role of human capital and R&D expenditures in China," Energy Economics, Elsevier, vol. 105(C).
    2. AM.Priyangani Adikari & Haiyun Liu & MMSA. Marasinghe, 2021. "Inward Foreign Direct Investment-Induced Technological Innovation in Sri Lanka? Empirical Evidence Using ARDL Approach," Sustainability, MDPI, vol. 13(13), pages 1-16, June.
    3. Gnangnon, Sèna Kimm, 2023. "Duration of membership in the world trade organization and investment-oriented remittances inflows," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 258-277.
    4. Sèna Kimm Gnangnon, 2022. "Aid for Trade is more effective when the trading environment is more predictable," Economic Affairs, Wiley Blackwell, vol. 42(3), pages 453-476, October.
    5. Hezron M. Osano & Pauline W. Koine, 2016. "Role of foreign direct investment on technology transfer and economic growth in Kenya: a case of the energy sector," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-25, December.
    6. Gnangnon, Sèna Kimm, 2022. "Duration of WTO Membership and Investment-Oriented Remittances Flows," EconStor Preprints 251274, ZBW - Leibniz Information Centre for Economics.
    7. Philip Bodman & Thanh Le, 2013. "Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus," Applied Economics, Taylor & Francis Journals, vol. 45(8), pages 1027-1039, March.
    8. Sèna Kimm Gnangnon, 2023. "Effect of Aid-for-Trade Flows on Investment-Oriented Remittance Flows," JRFM, MDPI, vol. 16(2), pages 1-36, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2277-2285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.