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


  • Raluca DRACEA
  • Cristian STANCIU

    (University of Craiova - Romania)

  • Ekrem TUFAN

    (Anadolu University, Turkey)


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 responsibilty 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.

Suggested Citation

  • Raluca DRACEA & Cristian STANCIU & Ekrem TUFAN, 2008. "The Impact of the Fiscal Competition on The Migration in European Union," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 3(36), pages 1267-1273, May.
  • Handle: RePEc:aio:aucsse:v:3:y:2008:i:11:p:1267-1273

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    References listed on IDEAS

    1. Mitu, Narcis Eduard, 2007. "European Tax Practice," MPRA Paper 10788, University Library of Munich, Germany.
    2. P. Giannoccolo, 2005. "Brain Drain Competition Policies in Europe: a Survey," Working Papers 534, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. P. Giannoccolo, 2003. "Brain Drain and Fiscal Competition. A theoretical model for the Europe," Working Papers 481, Dipartimento Scienze Economiche, Universita' di Bologna.
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    More about this item


    brain drain; fiscal competition; emigration competition.;

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy


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