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The pro-trade effect of the brain drain: Sorting out confounding factors

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  • Felbermayr, Gabriel J.
  • Jung, Benjamin

Abstract

We sort out confounding factors in the empirical link between bilateral migration and trade. Using newly available panel data on developing countries' diaspora to rich OECD nations in a theory-grounded gravity model, we uncover a robust, causal pro-trade effect. Moreover, we do not find evidence in favor of strong differences across education groups.

Suggested Citation

  • Felbermayr, Gabriel J. & Jung, Benjamin, 2009. "The pro-trade effect of the brain drain: Sorting out confounding factors," Economics Letters, Elsevier, vol. 104(2), pages 72-75, August.
  • Handle: RePEc:eee:ecolet:v:104:y:2009:i:2:p:72-75
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