Emigration Prospects and Human Capital in the Developing Countries: The Possibility of the Qualitative Brain Gain

Kouni, Mohamed (2010): Emigration Prospects and Human Capital in the Developing Countries: The Possibility of the Qualitative Brain Gain.

Abstract

In this paper we study the net effect of high-skilled emigration. Hence, we elaborate a simple theoretical model that studies the net effect of high-skilled emigration. The result showed that the emigration in the case where the fraction of human capital that emigrates is inferior to the critical level (equal to the difference between one and the elasticity of brain gain with respect to emigration), as well as in the case of the strong selectivity adopted, the emigration has the possibility to create a quantitative and qualitative brain gain. Indeed, to determine the net effect of brain drain we propose a new method that decomposes the gross investment of human capital into two components: the net domestic incentive effect and the net quantitative brain drain effect. Through This decomposition we can determine the net quantitative effect that arrives from the interior situation and the one arriving from the prospects effect. Finally, we tempt to define the indicator of the qualitative effect of this phenomenon. The empirical results showed that the emigration has an important effect on the human capital investment. Thus, the majority of countries have the possibility to register a net quantitative gain. Nevertheless, little of countries only have the possibility to record a qualitative brain gain.

• Item Type: MPRA Paper
• Language: English
• Keywords: Brain drain, human capital, development
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration

References

Barro R. J. and Sala-i-Martin X. (1995): “Economic Growth”; Mc Graw-hill; New York.

Beine M., Docquier F. and Rapoport H. (2001): « Brain drain and economic growth: theory and evidence » ; journal of Development Economics, vol 64.

Beine M., Docquier F. and Rapoport H. (2008) « Brain drain and human capital formation in developing countries: Winners and Losers››; The Economic Journal, vol 118

Boulila G. (1997) : “ Migration, capital humain et croissance économique des pays en développement”; Revue Tunisienne d’Economie, n 8.

Carrington W. J. et Detragiache E. (1998): « How big is the Brain drain?” IMF, WP n° 102.

Cashin P. et Loayza N. (1995): « Paradise lost? Growth, convergence, and migration in the Sowth Pacific » ; IMF staff papers, vol 42 n 3.

Docquier, Lohest and Marfouk (2007): « Brain drain in developing countries »; the World Bank Economic Review, vol 21

Docquier F. and Marfouk A. (2004) : « Measuring the international mobility of skilled workers (1990-2000) » ; World Bank WPS n 3381.

Docquier F. and Rapoport H. (2004) : « Skilled migration ; The perspective of developing countries » ; World Bank, WPS n 3382.

Haque N. U. and Kim S. (1995): “Human capital flight: Impact of migration on income and growth”; FMI, Staff Papers, vol 42 n 3.

Lucas B. (2001) : “Labour supply, migration, and long term development”; Open Economics Review, vol 12

Lucas R. (2005): “International migration to the high-income countries: Some consequences for economic development in the sending countries“; annual World Bank conference on development Economics, Europe; World Bank.

Lucas R. (1988): “On the Mechanics of economic development”, Journal of Monetary Economic, 3-42

Mankiw, Romer and Weil (1992) : « A contribution to the empirics of economic growth » ; Quarterly journal of economics, vol 107, n 2

Mountford A. (1997) : “ Can a brain drain be good for growth in the source economy?”; Journal of Development Economics, 53

Sciff M. (2005): “Brain grain: claims about its size and impact on welfare and growth are greatly exaggerated”; World Bank, W P S n° 370821

Schiff M. (1994) : “ How trade, aid, and remittances affect international migration”; World Bank, WPS n 1376

Solow (1956): “A contribution to the theory of economic growth” Quarterly Journal of Economics”, 65-94

Stark O. and Wang Y. (2002) : « Inducing human capital formation : migration as a substitute for subsidies » ; Journal of Public Economics, vol :86

World Bank (2006): “Economic Implications of Remittances and Migration”; in Global Economic prospects