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International Trade in Education, Skilled Migration and Economic Growth

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  • Lan Hong Thi Dang
  • Russell H Hillberry

Abstract

International trade in education is a large and growing phenomenon. We investigate the consequences of such trade for economic growth in developing countries using a model with a role for trade costs and endogenous emigration of students educated abroad. The developing country’s comparative disadvantage in education means that trade allows it to acquire human capital at a lower opportunity cost, and raise its steadystate growth rate. If a sufficiently large share of students remain abroad, however, the net effect of international trade and skilled migration reduces steady-state growth rates below their autarky levels

Suggested Citation

  • Lan Hong Thi Dang & Russell H Hillberry, 2008. "International Trade in Education, Skilled Migration and Economic Growth," Department of Economics - Working Papers Series 1055, The University of Melbourne.
  • Handle: RePEc:mlb:wpaper:1055
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    File URL: http://fbe.unimelb.edu.au/__data/assets/pdf_file/0008/802745/1055.pdf
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    References listed on IDEAS

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    1. Miyagiwa, Kaz, 1991. "Scale Economies in Education and the Brain Drain Problem," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 743-759, August.
    2. Ortigueira, Salvador & Santos, Manuel S, 1997. "On the Speed of Convergence in Endogenous Growth Models," American Economic Review, American Economic Association, vol. 87(3), pages 383-399, June.
    3. Lee, Jong-Wha, 1995. "Capital goods imports and long-run growth," Journal of Development Economics, Elsevier, vol. 48(1), pages 91-110, October.
    4. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
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