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Brain Drain and Development Traps

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  • Jean-Pascal Bénassy
  • Elise S. Brézis

    ()
    (Bar-Ilan University)

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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File URL: http://econ.biu.ac.il/files/economics/working-papers/2012-03.pdf
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Bibliographic Info

Paper provided by Bar-Ilan University, Department of Economics in its series Working Papers with number 2012-03.

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Length: 21 pages
Date of creation: Jan 2012
Date of revision:
Handle: RePEc:biu:wpaper:2012-03

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Keywords: brain drain; development traps; human capital; migration.;

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References

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  1. Frédéric Docquier & Hillel Rapoport, 2012. "Globalization, Brain Drain, and Development," Journal of Economic Literature, American Economic Association, vol. 50(3), pages 681-730, September.
  2. Michel Beine & Frédéric Docquier & Hillel Rapoport, . "Brain drain and human capital formation in developing countries: winners and losers?," ULB Institutional Repository 2013/10415, ULB -- Universite Libre de Bruxelles.
  3. Elise Brezis & Paul Krugman, 1996. "Immigration, investment, and real wages," Journal of Population Economics, Springer, Springer, vol. 9(1), pages 83-93, February.
  4. 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).
  5. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human capital depletion, human capital formation, and migration: a blessing or a "curse"?," Economics Letters, Elsevier, Elsevier, vol. 60(3), pages 363-367, September.
  6. David de la Croix & Frederic Docquier, 2010. "Do Brain Drain and Poverty Result from Coordination Failures?," CReAM Discussion Paper Series 1009, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  7. Costas Aariadis & John Stachurski, 2004. "Poverty Traps," Department of Economics - Working Papers Series, The University of Melbourne 913, The University of Melbourne.
    • 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.
  8. John Gibson & David McKenzie, 2011. "Eight Questions about Brain Drain," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 25(3), pages 107-28, Summer.
  9. Kwok, Viem & Leland, Hayne, 1982. "An Economic Model of the Brain Drain," American Economic Review, American Economic Association, American Economic Association, vol. 72(1), pages 91-100, March.
  10. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series, Institute for Advanced Studies 45, Institute for Advanced Studies.
  11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, Elsevier, vol. 22(1), pages 3-42, July.
  12. 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.
  13. 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.
  14. Frederic, DOCQUIER & B. Lindsay, LOWELL & Abdeslam, MARFOUK, 2007. "A gendered assessment of the brain drain," Discussion Papers (ECON - Département des Sciences Economiques), Université catholique de Louvain, Département des Sciences Economiques 2007045, Université catholique de Louvain, Département des Sciences Economiques.
  15. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, Elsevier, vol. 64(1), pages 275-289, February.
  16. Stark, Oded, 2004. "Rethinking the Brain Drain," World Development, Elsevier, Elsevier, vol. 32(1), pages 15-22, January.
  17. Mountford, Andrew & Rapoport, Hillel, 2011. "The brain drain and the world distribution of income," Journal of Development Economics, Elsevier, Elsevier, vol. 95(1), pages 4-17, May.
  18. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, American Economic Association, vol. 72(3), pages 389-405, June.
  19. repec:ecj:econjl:v:122:y:2012:i::p:339-375 is not listed on IDEAS
  20. Azariadis, Costas & Drazen, Allan, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 105(2), pages 501-26, May.
  21. Elise Brezis & Ariel Soueri, 2011. "Why do Students Migrate? Where do they Migrate to?," Working Papers, AlmaLaurea Inter-University Consortium 25, AlmaLaurea Inter-University Consortium.
  22. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, Elsevier, vol. 1(1), pages 19-42, April.
  23. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, Elsevier, vol. 53(2), pages 287-303, August.
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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, Bar-Ilan University, Department of Economics 2013-11, Bar-Ilan University, Department of Economics.
  2. Elise S. Brezis & Ariel Soueri, 2012. "Globalization and Migration: A “Unified Brain Drain” Model," Working Papers, Bar-Ilan University, Department of Economics 2012-15, Bar-Ilan University, Department of Economics.

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