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Corruption drives brain drain: Cross-country evidence from machine learning

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  • Li, Qiang
  • An, Lian
  • Zhang, Ren

Abstract

This paper examines the impact of corruption and other governance qualities on migration using a novel approach. By employing machine learning techniques and analyzing data from 130 countries, we isolate the effects of corruption and find that it is the primary driver of brain drain, challenging existing beliefs. Our innovative machine-learning technique allows us to select optimal instrumental variables, enhancing the accuracy of our findings. We identify weakened property rights protection, unmet basic needs, and declining well-being as key channels through which corruption influences migration. Our results are robust to various estimations, falsification tests, and alternative corruption measures. By emphasizing the dominant role of corruption in driving brain drain, our study underscores the urgent need for effective anti-corruption measures and improved governance practices to retain talent.

Suggested Citation

  • Li, Qiang & An, Lian & Zhang, Ren, 2023. "Corruption drives brain drain: Cross-country evidence from machine learning," Economic Modelling, Elsevier, vol. 126(C).
  • Handle: RePEc:eee:ecmode:v:126:y:2023:i:c:s0264999323001918
    DOI: 10.1016/j.econmod.2023.106379
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    More about this item

    Keywords

    Corruption; Brain drain; Good governance; IV-Lasso; Machine learning;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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