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Migration, Human Capital Formation and Growth: an Empirical Investigation

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  • Corrado Di Maria
  • Emiliya Lazarova

Abstract

In this empirical investigation we study the effect of skilled emigration on human capital formation and growth in a sample of developing countries. We find that the migration rate exerts statistically significant effects on both the level and the skill composition of human capital. We also show that these migration-induced changes in the formation of human capital affect the growth performance of sending countries. The sign and the magnitude of these effects are shown to depend on the level of economic development of the sending country. Both the least and the most developed countries in our sample would suffer as a result of an increase in skilled migration, while countries at intermediate stages of development may benefit. Overall, the majority of sending countries are shown to lose from migration, and the losses that accrue to the least developed ones are larger than the benefits for the winners.

Suggested Citation

  • Corrado Di Maria & Emiliya Lazarova, 2010. "Migration, Human Capital Formation and Growth: an Empirical Investigation," Economics Working Papers 10-03, Queen's Management School, Queen's University Belfast.
  • Handle: RePEc:qub:wpaper:1003
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    Cited by:

    1. Chepel, S. & Bondarenko, K., 2015. "Is the External Labor Migration an Economic Growth Factor: Econometric Analysis and Policy Implications for the CIS Countries," Journal of the New Economic Association, New Economic Association, vol. 28(4), pages 142-166.
    2. Michael A. Clemens, 2016. "Losing our minds? New research directions on skilled emigration and development," International Journal of Manpower, Emerald Group Publishing, vol. 37(7), pages 1227-1248, October.
    3. Heuer, Nina, 2011. "The effect of occupation-specific brain drain on human capital," University of Tuebingen Working Papers in Economics and Finance 7, University of Tuebingen, Faculty of Economics and Social Sciences.
    4. Bredtmann, Julia & Martínez Flores, Fernanda & Otten, Sebastian, 2016. "Remittances and the brain drain: Evidence from microdata for Sub-Saharan Africa," Ruhr Economic Papers 654, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. repec:eee:injoed:v:55:y:2017:i:c:p:56-62 is not listed on IDEAS
    6. Mawussé K. N. Okey, 2017. "Does migration promote industrial development in Africa?," Economics Bulletin, AccessEcon, vol. 37(1), pages 228-247.
    7. repec:spr:scient:v:101:y:2014:i:3:d:10.1007_s11192-014-1307-6 is not listed on IDEAS
    8. Herbst, Mikolaj & Rok, Jakub, 2013. "Mobility of human capital and its effect on regional economic development. Review of theory and empirical literature," MPRA Paper 45755, University Library of Munich, Germany.
    9. repec:eee:wdevel:v:96:y:2017:i:c:p:438-450 is not listed on IDEAS
    10. repec:gam:jsusta:v:9:y:2017:i:5:p:676-:d:96676 is not listed on IDEAS
    11. Guzi, Martin & Mikula, Stepan, 2018. "Reforms That Keep You at Home: The Effects of Economic Transition on Migration," IZA Discussion Papers 11369, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Education; Brain Drain; Migration; Human Capital; Economic Growth;

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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