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The Impacts of Brain Drain on Production and Foreign Trade of Iran Using a General Equilibrium Model


  • Horry, Hamidreza

    () (Shahid Bahonar University of Kerman)

  • Jalaee, Seyed Abdolmajid

    () (Shahid Bahonar University of Kerman)

  • Hamzenejad, Nasim

    () (Shahid Bahonar University of Kerman)


Along with the tendency of countries to globalization, the competition arena changes from regional to the global level. In this process those countries are successful that have higher competition ability in international trade. One of the factors affecting the strength of competition in the field of international nations is human resources specialist. This is while during last decades, Iran has experienced high rates of immigration to developed countries. This study investigated the effects of brain drain (brain drain define as skilled labor migration) on Iran’s production and foreign trade for different economic sectors using general equilibrium model (GTAP). The results showed that brain drain would have negative effects on production and foreign trade of country. The brain drain phenomenon, with an exception of oil and gas sectors, has negatively influenced the rate of imports and exports and net trade balance in other economic sectors (agriculture, industry and services), the main reason of which is the determining role of specialized labor force in the quality of products and the degree of competitiveness. The reason that brain drain has no impact on oil and gas sectors, is because these sectors apply production inputs of other sectors (Being a leading oil and gas sector).

Suggested Citation

  • Horry, Hamidreza & Jalaee, Seyed Abdolmajid & Hamzenejad, Nasim, 2015. "The Impacts of Brain Drain on Production and Foreign Trade of Iran Using a General Equilibrium Model," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 2(1), pages 25-44, April.
  • Handle: RePEc:ris:qjatoe:0002

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    More about this item


    Risk rating; Brain Drain; Foreign Trade; Computable General Equilibrium Models; GTAP.;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration


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