Brain Drain and Productivity Growth: Are Small States Different?
AbstractThis paper examines the impact of North-South trade-related technology diffusion on TFP growth in small and large states in the South. The main findings are: i) TFP growth increases with North-South trade-related technology diffusion, with education, and with the interaction between the two, and it decreases with the emigration of skilled labor (brain drain); ii) these effects are substantially (over three times) larger in small states than in large ones. Small states also exhibit a much higher brain drain level. Consequently, the brain drain generates greater losses in terms of TFP growth both because of its greater sensitivity to the brain drain and because the brain drain is substantially larger in small than in large states.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3378.
Length: 20 pages
Date of creation: Feb 2008
Date of revision:
Publication status: published in: International Economic Journal, 2013, 27(2), 399-414
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Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-AFR-2008-03-15 (Africa)
- NEP-ALL-2008-03-15 (All new papers)
- NEP-EDU-2008-03-15 (Education)
- NEP-HRM-2008-03-15 (Human Capital & Human Resource Management)
- NEP-INT-2008-03-15 (International Trade)
- NEP-MIG-2008-03-15 (Economics of Human Migration)
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