Brain drain and Remittances: implications for the source country
In this paper, we model a developing economy in which individual decisions about education and migration are constrained by capital market imperfections (liquidity constraints). We examine the joint impact of brain drain and international remittances on human capital accumulation in the emigration country. We derive the condition under which the emigration of the most talented workers stimulates the economy-wide average stock of human capital in the sending country (compared to the closed economy benchmark). Such a BBD outcome (beneficial brain drain) is obtained (i) when the return to education is high compared to the costs of education and migration and (ii) when remittances received by each young are important. Unlike recent papers in that literature, the BBD cannot be obtained if emigration rates are small.
Volume (Year): 47 (2004)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://difusion.ulb.ac.be|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bxr:bxrceb:y:2004:v:47:i:1:p:102-118. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benoit Pauwels)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.