IDEAS home Printed from https://ideas.repec.org/p/kob/dpaper/dp2014-06.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2014-06.pdf
    File Function: Revised version, 2014
    Download Restriction: no

    References listed on IDEAS

    as
    1. David ZWEIG, 2006. "Competing for talent: China's strategies to reverse the brain drain," International Labour Review, International Labour Organization, vol. 145(1-2), pages 65-90, March.
    2. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-176, February.
    3. Galor, Oded & Stark, Oded, 1990. "Migrants' Savings, the Probability of Return Migration and Migrants' Performance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 463-467, May.
    4. Fujishima, Shota, 2013. "Growth, agglomeration, and urban congestion," Journal of Economic Dynamics and Control, Elsevier, vol. 37(6), pages 1168-1181.
    5. Thomas Lange, 2013. "Return migration of foreign students and non-resident tuition fees," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 703-718, April.
    6. Dustmann, Christian & Fadlon, Itzhak & Weiss, Yoram, 2011. "Return migration, human capital accumulation and the brain drain," Journal of Development Economics, Elsevier, vol. 95(1), pages 58-67, May.
    7. Manon Domingues Dos Santos & Fabien Postel-Vinay, 2003. "Migration as a source of growth: The perspective of a developing country," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(1), pages 161-175, February.
    8. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
    9. Christian Dustmann, 2003. "Children and return migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 815-830, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Capital accumulation; Studying abroad; Return migration; Heterogeneous ability; Positive selection; Brain gain;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kob:dpaper:dp2014-06. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University). General contact details of provider: http://edirc.repec.org/data/rikobjp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.