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Diaspora Externalities and Technology Diffusion

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  • Elisabetta, LODIGIANI

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

Abstract

The aim of this paper is to highlight the positive and important role that skilled migration can have on TFP growth in the sendind countries, when diaspora effects in technology diffusion are introduced. To investigate our issue, we start from a previous paper by Vandenbussche, Aghion and Costa Methir (2006), in which they examine the contribution of human capital to economic growth, where technological improvements are a result of a combination between innovation and imitation. Considering the impact of a positive externality on growth due to skilled migration, we show that a marginal increase in the stock of skilled human capital contributes more to productivity growth if a state is closer to the technological frontier and migration should raise growth in area from the frontier. Also, we provide evidence in favour of this prediction by using a panel dataset covering 92 countries between 1980 and 2000. Even if our empirical study has a lot of shortcomings, given the small number of countries and of time periods due to the current availability of data in the existing cross-country datasets, this works is the first one that attempt to investigate the relationship between growth and networks externalities, underlying the importance of the skilled diaspora in the transfer of ideas.

Suggested Citation

  • Elisabetta, LODIGIANI, 2008. "Diaspora Externalities and Technology Diffusion," Discussion Papers (ECON - Département des Sciences Economiques) 2008008, Université catholique de Louvain, Département des Sciences Economiques.
  • Handle: RePEc:ctl:louvec:2008008
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    Cited by:

    1. Luca Marchiori & I-Ling Shen & Frédéric Docquier, 2013. "Brain Drain In Globalization: A General Equilibrium Analysis From The Sending Countries' Perspective," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1582-1602, April.
    2. Elisabetta Lodigiani & Luca Marchiori & I-Ling Shen, 2016. "Revisiting the Brain Drain Literature with Insights from a Dynamic General Equilibrium World Model," The World Economy, Wiley Blackwell, vol. 39(4), pages 557-573, April.
    3. Jean Fouré & Agnès Bénassy-Quéré & Lionel Fontagné, 2012. "The Great Shift : Macroeconomic projections For the World Economy at the 2050 Horizon," Working Papers hal-00962464, HAL.
    4. Jean Fouré & Agnès Bénassy-Quéré & Lionel Fontagné, 2012. "The Great Shift: Macroeconomic projections for the world economy at the 2050 horizon," Working Papers 2012-03, CEPII research center.
    5. Bang, James T. & Mitra, Aniruddha, 2011. "Brain drain and institutions of governance: Educational attainment of immigrants to the US 1988-1998," Economic Systems, Elsevier, vol. 35(3), pages 335-354, September.

    More about this item

    Keywords

    Economic growth; Imitation; Innovation; Migration; Brain drain; Diaspora;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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