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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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    2. 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.
    3. 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.
    4. Julia Bredtmann & Fernanda Martínez Flores & Sebastian Otten, 2019. "Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 55(7), pages 1455-1476, July.
    5. Heuer, Nina, 2011. "The effect of occupation-specific brain drain on human capital," University of Tübingen Working Papers in Business and Economics 7, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    6. Rocha, Leonardo Andrade & Silva, Napiê Galvê Araújo & Almeida, Carlo Alano Soares de & Oliveira, Denison Murilo de & Fernandes, Kaio César, 2020. "Growth and heterogeneity of human capital: effects of the expansion of higher education on the income increase in Brazilian municipalities," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    7. Campbell, Anne C., 2017. "How international scholarship recipients perceive their contributions to the development of their home countries: Findings from a comparative study of Georgia and Moldova," International Journal of Educational Development, Elsevier, vol. 55(C), pages 56-62.
    8. Hari Sharma & John Gibson, 2020. "Effects of International Migration on Child Schooling and Child Labour: Evidence from Nepal," Working Papers in Economics 20/07, University of Waikato.
    9. Mawussé K. N. Okey, 2017. "Does migration promote industrial development in Africa?," Economics Bulletin, AccessEcon, vol. 37(1), pages 228-247.
    10. Mozumder, Lavlu & Islam, Mohammad Amirul, 2017. "Effects Of Remittances On Human Capital Development: An Empirical Analysis," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 36(1-2), April.
    11. Henk F. Moed & Gali Halevi, 2014. "A bibliometric approach to tracking international scientific migration," Scientometrics, Springer;Akadémiai Kiadó, vol. 101(3), pages 1987-2001, December.
    12. Kashif Iqbal & Yichu Wang & Khurshaid Khurshaid & Muhammad Haroon Shah & Muhammad Sohaib, 2021. "Current Trend and Determinants of Intentions to Migrate: Evidence From China," SAGE Open, , vol. 11(1), pages 21582440211, March.
    13. Imtiaz Arif & Syed Ali Raza & Anita Friemann & Muhammad Tahir Suleman, 2019. "The Role of Remittances in the Development of Higher Education: Evidence from Top Remittance Receiving Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1233-1243, February.
    14. 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.
    15. Lim, Sokchea & Basnet, Hem C., 2017. "International Migration, Workers’ Remittances and Permanent Income Hypothesis," World Development, Elsevier, vol. 96(C), pages 438-450.
    16. Youngjin Woo & Euijune Kim & Jaewon Lim, 2017. "The Impact of Education and R&D Investment on Regional Economic Growth," Sustainability, MDPI, Open Access Journal, vol. 9(5), pages 1-18, April.
    17. Guzi, Martin & Mikula, Stepan, 2018. "Reforms That Keep You at Home: The Effects of Economic Transition on Migration," IZA Discussion Papers 11369, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Education; Brain Drain; Migration; Human Capital; Economic Growth;
    All these keywords.

    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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