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Brains for Capital. The Effect of Brain Drain on Investments and Convergence

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  • Piotr Stryszowski

Abstract

The empirical experience of countries hit by brain drain shows no clear impact of human capital outflow on the source economy. This study shows that by triggering the capital flows from abroad, the brain can be beneficial for the sending countries. The theoretical claim about the causal effect of brain drain on capital flows is supported by empirical analysis.

Suggested Citation

  • Piotr Stryszowski, 2006. "Brains for Capital. The Effect of Brain Drain on Investments and Convergence," DEGIT Conference Papers c011_049, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c011_049
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    File URL: http://degit.sam.sdu.dk/papers/degit_11/C011_049.pdf
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    More about this item

    Keywords

    Economic Growth; Technological Change; Brain Drain; FDI;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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