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Examining The Risk Of Brain Drain And Lower Remittances

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  • RONALD U. MENDOZA

    (Asian Institute of Management, 123 Paseo de Roxas, Makati City, Philippines)

Abstract

Developing countries could be facing two linked trends that are potentially detrimental to their development prospects: outmigration of high-skilled professionals and the potential decline in remittances as migrants with higher skills may be less likely to remit or may remit less if they do. This paper examines this policy issue by empirically analyzing a cross-national dataset spanning 70 countries during the period 1985–2000, as well as a country-specific dataset for the Philippines. It finds little evidence that high-skilled migration is linked to lower remittances at the aggregate level. This finding coheres with more recent studies leveraging microlevel data.

Suggested Citation

  • Ronald U. Mendoza, 2013. "Examining The Risk Of Brain Drain And Lower Remittances," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 58(01), pages 1-13.
    • Handle: RePEc:wsi:serxxx:v:58:y:2013:i:01:n:s0217590813500069
    DOI: 10.1142/S0217590813500069
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    References listed on IDEAS

    as
    1. Samuel Munzele Maimbo & Dilip Ratha, 2005. "Remittances: Development Impact and Future Prospects," World Bank Publications - Books, The World Bank Group, number 7339.
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    More about this item

    Keywords

    Brain drain; brain gain; diaspora; remittances; migration; F22; J61; O15;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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