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Brain drain and Human Capital Formation in Developing Countries. Are there Really Winners?


  • José Luis Groizard

    (Universitat de les Illes Balears)

  • Joan Llull



We examine the empirical relationship between the migration rate of skilled workers and human capital formation in developing countries. In particular, we revisit Beine, Docquier and Rapoport (2007), who find evidence of an incentive effect. Our results suggest that an incentive effect is weak if not absent, since positive correlation among brain drain and human capital ex-ante is not robust to small changes in the specification.

Suggested Citation

  • José Luis Groizard & Joan Llull, 2007. "Brain drain and Human Capital Formation in Developing Countries. Are there Really Winners?," DEA Working Papers 28, Universitat de les Illes Balears, Departament d'Economía Aplicada.
  • Handle: RePEc:ubi:deawps:28

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    References listed on IDEAS

    1. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    2. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human capital depletion, human capital formation, and migration: a blessing or a "curse"?," Economics Letters, Elsevier, vol. 60(3), pages 363-367, September.
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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.

    More about this item


    brain drain; migration; education; incentives;

    JEL classification:

    • 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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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