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Capital Accumulation through Studying Abroad and Return Migration

Author

Listed:
  • Takumi Naito

    (Waseda University)

  • Laixun Zhao

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

This paper characterizes the interactions among studying abroad, return migration, and capital accumulation, in a two-country overlapping generations model with households of heterogeneous ability. The model exhibits positive selection of migration status (i.e., permanent, return, and non-migrants) based on ability, and over time, return migration increases as capital accumulates. Further, a decrease in the fixed cost of studying abroad and a simultaneous offsetting increase in the fixed cost of working abroad raise the relative supply of capital in the source country without decreasing anyone’s utility. Nevertheless, any single change in either fixed cost cannot achieve it.

Suggested Citation

  • Takumi Naito & Laixun Zhao, 2014. "Capital Accumulation through Studying Abroad and Return Migration," Discussion Paper Series DP2014-06, Research Institute for Economics & Business Administration, Kobe University, revised Mar 2014.
  • Handle: RePEc:kob:dpaper:dp2014-06
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2014-06.pdf
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    Cited by:

    1. Skvarciany Viktorija & Shina Inga & Sajjad Fawad bin, 2020. "Decision Factors behind Choosing Higher Education Institutions in Europe," Economics and Culture, Sciendo, vol. 17(1), pages 75-86, June.
    2. Alejandro Vega-Muñoz & Paloma Gónzalez-Gómez-del-Miño & Juan Felipe Espinosa-Cristia, 2021. "Recognizing New Trends in Brain Drain Studies in the Framework of Global Sustainability," Sustainability, MDPI, Open Access Journal, vol. 13(6), pages 1-27, March.

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    More about this item

    Keywords

    Capital accumulation; Studying abroad; Return migration; Heterogeneous ability; Positive selection; Brain gain;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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