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Brain Drain In Globalization: A General Equilibrium Analysis From The Sending Countries' Perspective

Author

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  • LUCA MARCHIORI
  • I-LING SHEN
  • FRÉDÉRIC DOCQUIER

Abstract

High-skilled emigration has been found to affect developing economies via different channels. With a calibrated general equilibrium framework, this paper finds that the short-run impact of brain drain on resident human capital is extremely crucial, as it does not only determine the number of high-skilled workers available to domestic production, but it affects the sending economy?s capacity to innovate/adopt modern technologies. The latter impact is particularly important in globalization, where capital investments are made in places with higher production efficiencies. Hence, despite the positive feedback effects, those countries facing prevalent high-skilled emigration are the most candid victims to brain drain.
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Suggested Citation

  • Luca Marchiori & I-Ling Shen & Frédéric Docquier, 2013. "Brain Drain In Globalization: A General Equilibrium Analysis From The Sending Countries' Perspective," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1582-1602, April.
    • Handle: RePEc:bla:ecinqu:v:51:y:2013:i:2:p:1582-1602
    DOI: j.1465-7295.2012.00492.x
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    Cited by:

    1. Kouni, Mohamed, 2016. "Medical Brain Drain and Life Expectancy: A Comparative Analysis between Arab, American and Asian Countries," MPRA Paper 78321, University Library of Munich, Germany.
    2. Karim Gassemi & Loubna Aniba, 2024. "The Brain Drain of Moroccan IT Profiles: An Exploratory Qualitative Study within Y and Z Generations," International Review of Management and Marketing, Econjournals, vol. 14(4), pages 37-45, July.
    3. Małgorzata Walerych, 2024. "The aggregate and redistributive effects of emigration," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(1), pages 99-143, February.
    4. Harald Fadinger & Karin Mayr, 2014. "Skill-Biased Technological Change, Unemployment, And Brain Drain," Journal of the European Economic Association, European Economic Association, vol. 12(2), pages 397-431, April.
    5. Anthony Orji & Chukwuma Agu, 2018. "Analysis of Migration, Regional Characteristics, and Socioeconomic Outcomes in Developing Economies: Empirical Evidence from Nigeria," Journal of International Migration and Integration, Springer, vol. 19(3), pages 565-581, August.
    6. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    7. Duarte Leite & Óscar Afonso & Sandra Silva, 2014. "A tale of two countries: a directed technical change approach," FEP Working Papers 539, Universidade do Porto, Faculdade de Economia do Porto.
    8. Nejad, Maryam Naghsh & Young, Andrew T., 2016. "Want freedom, will travel: Emigrant self-selection according to institutional quality," European Journal of Political Economy, Elsevier, vol. 45(S), pages 71-84.
    9. Vladimir Borgy & Xavier Chojnicki & Gilles Le Garrec & Cyrille Schwellnus, 2010. "Macroeconomic Consequences of Global Endogenous Migration: a General Equilibrium Analysis," Annals of Economics and Statistics, GENES, issue 97-98, pages 13-39.
    10. Bennett, Daniel & Nikolaev, Boris & Aidt, Toke, 2016. "Institutions & Well-being," MPRA Paper 78436, University Library of Munich, Germany.
    11. Zhang, Yi & Matz, Julia Anna, 2017. "On the train to brain gain in rural China," Discussion Papers 252443, University of Bonn, Center for Development Research (ZEF).
    12. Leite, Duarte N. & Afonso, Óscar & Silva, Sandra T., 2019. "A tale of two countries: Directed technical change, trade and migratory movements," Economic Modelling, Elsevier, vol. 83(C), pages 173-194.
    13. Andrea Caragliu & Peter Nijkamp, 2013. "From Islands to Hubs of Innovation: Connecting Innovative Regions," Tinbergen Institute Discussion Papers 13-141/VIII, Tinbergen Institute.
    14. George-Laurentiu Serban-Oprescu & Liana Badea & Isabel Novo-Corti & Mihaela Roberta Stanef & Silvia Elena Iacob & Grigore Ioan Pirosca, 2021. "Socio-Psychological Dimensions of Students Migration. A Pilot Study," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(Special15), pages 1015-1015, November.
    15. Ted Davis & David M. Hart, 2010. "International Cooperation to Manage High‐Skill Migration: The Case of India–U.S. Relations," Review of Policy Research, Policy Studies Organization, vol. 27(4), pages 509-526, July.
    16. Ratha, Dilip & Mohapatra, Sanket & Scheja, Elina, 2011. "Impact of migration on economic and social development : a review of evidence and emerging issues," Policy Research Working Paper Series 5558, The World Bank.
    17. Okoye, Dozie, 2016. "Can brain drain be good for human capital growth? Evidence from cross-country skill premiums and education costs," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 74-99.
    18. Elisabetta Lodigiani & Luca Marchiori & I-Ling Shen, 2016. "Revisiting the Brain Drain Literature with Insights from a Dynamic General Equilibrium World Model," The World Economy, Wiley Blackwell, vol. 39(4), pages 557-573, April.
    19. Arends-Kuenning, Mary P. & Calara, Alvaro & Go, Stella, 2015. "International Migration Opportunities and Occupational Choice: A Case Study of Philippine Nurses 2002 to 2014," IZA Discussion Papers 8881, Institute of Labor Economics (IZA).
    20. Sharma, Hari, 2020. "The effect of emigration and remittances on labour supply of the left-behind: Evidence from Nepal," MPRA Paper 102091, University Library of Munich, Germany.
    21. Docquier, Frédéric & Marchiori, Luca, 2012. "The impact of MENA-to-EU migration in the context of demographic change," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(2), pages 243-284, April.
    22. Iryna Shopina & Olena Oliinyk & Valerii Finaheiev, 2017. "Globalization And Its Negative Impact On The Global Economy," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 3(5).
    23. Vikhrov Dmytro, 2013. "Welfare Effects of Labor Migration," CERGE-EI Working Papers wp491, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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