Brain Drain in Globalization: A General Equilibrium Analysis from the Sending Countries' Perspective

46 Pages Posted: 10 Feb 2010

See all articles by Frédéric Docquier

Frédéric Docquier

Luxembourg Institute of Socio-Economic Research (LISER); Université catholique de Louvain; CREAM, Centre for Research on Environmental Appraisal & Management, UK; IZA Institute of Labor Economics

Luca Marchiori

Catholic University of Louvain (UCL); Universite du Luxembourg

I-Ling Shen

Catholic University of Louvain (UCL); IZA Institute of Labor Economics

Multiple version iconThere are 3 versions of this paper

Date Written: February 2010

Abstract

High-skilled emigration has been found to affect developing economies via different channels. With a calibrated general equilibrium framework, this paper finds that the short-run impact of brain drain on resident human capital is extremely crucial, as it does not only determine the number of high-skilled workers available to domestic production, but it affects the sending economy’s capacity to innovate/adopt modern technologies. The latter impact is particularly important in globalization, where capital investments are made in places with higher production efficiencies. Hence, despite the positive feedback effects, those countries facing prevalent high-skilled emigration are the most candid victims to brain drain.

Keywords: brain drain, capital flow, development, human capital

JEL Classification: F22, J24, O15

Suggested Citation

Docquier, Frédéric and Marchiori, Luca and Shen, I-Ling, Brain Drain in Globalization: A General Equilibrium Analysis from the Sending Countries' Perspective (February 2010). CEPR Discussion Paper No. DP7682, Available at SSRN: https://ssrn.com/abstract=1550594

Frédéric Docquier (Contact Author)

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Campus Belval – Maison des Sciences Humaines
Esch-sur-Alzette, L-4366
Luxembourg

Université catholique de Louvain ( email )

IRES
Place Montesquieu 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://https://perso.uclouvain.be/frederic.docquier/

CREAM, Centre for Research on Environmental Appraisal & Management, UK

University of Newcastle
NE1 7RU Newcastle Upon Tyne
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Luca Marchiori

Catholic University of Louvain (UCL) ( email )

Place Montesquieu, 3
Louvain-la-Neuve, 1348
Belgium

Universite du Luxembourg

L-1511 Luxembourg
Luxembourg

I-Ling Shen

Catholic University of Louvain (UCL) ( email )

Place Montesquieu, 3
Louvain-la-Neuve, 1348
Belgium

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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