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Tax competition and brain drain in the European Union members

Author

Listed:
  • Raluca DRACEA
  • Cristian STANCIU

    (University of Craiova)

Abstract

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, 2008. "Tax competition and brain drain in the European Union members," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(7), pages 133-138, May.
  • Handle: RePEc:aio:fpvfcf:v:1:y:2008:i:7:p:133-138
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    File URL: http://feaa.ucv.ro/FPV/007-19.pdf
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    More about this item

    Keywords

    tax competition; brain drain; migration competition; education;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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