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Migration, Learning, and Development

  • Zakharenko, Roman

US-educated Indian engineers played a major role in the establishment of the “Silicon Valley of Asia” in Bangalore. The experience of India and other countries shows that returning well-educated emigrants, despite their small numbers, can make a difference. This paper builds a model of “local” knowledge spillovers, in which migration of a small number of highly skilled individuals greatly affects country-level human capital accumulation. All economic activity occurs in pairs of individuals randomly matched to each other. Each pair produces the consumption good; the skills of the two partners are complementary. At the same time, the less skilled partner increases human capital by learning from the more skilled colleague. With poor institutions at home, highly skilled individuals leave the country seeking better opportunities abroad. On the contrary, improved institutions foster return migration of emigrants who have acquired more knowledge while abroad. These return migrants greatly amplify the positive effect of better institutions.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6262.

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Date of creation: Nov 2007
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Handle: RePEc:pra:mprapa:6262
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  1. Dustmann, Christian & Kirchkamp, Oliver, 2001. "The Optimal Migration Duration and Activity Choice after Re-migration," IZA Discussion Papers 266, Institute for the Study of Labor (IZA).
  2. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
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  4. repec:hrv:faseco:4784031 is not listed on IDEAS
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  8. Dean Yang, 2006. "Why Do Migrants Return to Poor Countries? Evidence from Philippine Migrants' Responses to Exchange Rate Shocks," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 715-735, November.
  9. Huggett, Mark, 1993. "The risk-free rate in heterogeneous-agent incomplete-insurance economies," Journal of Economic Dynamics and Control, Elsevier, vol. 17(5-6), pages 953-969.
  10. James R. Markusen & Natalia Trofimenko, 2007. "Teaching Locals New Tricks: Foreign Experts as a Channel of Knowledge Transfers," NBER Working Papers 12872, National Bureau of Economic Research, Inc.
  11. Jose-Victor Rios-Rull, 1997. "Computation of equilibria in heterogeneous agent models," Staff Report 231, Federal Reserve Bank of Minneapolis.
  12. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
  13. Jovanovic, Boyan & Rob, Rafael, 1989. "The Growth and Diffusion of Knowledge," Review of Economic Studies, Wiley Blackwell, vol. 56(4), pages 569-82, October.
  14. Pol Antras & Luis Garicano & Esteban Rossi-Hansberg, 2005. "Offshoring in a Knowledge Economy," Harvard Institute of Economic Research Working Papers 2067, Harvard - Institute of Economic Research.
  15. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
  16. Zhao, Yaohui, 2002. "Causes and Consequences of Return Migration: Recent Evidence from China," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 376-394, June.
  17. Commander, Simon & Kangasniemi, Mari & Winters, L. Alan, 2003. "The Brain Drain: Curse or Boon?," IZA Discussion Papers 809, Institute for the Study of Labor (IZA).
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