Globalization, Brain Drain, and Development

TLDR

This paper reviews four decades of economics research on the brain drain, assessing its magnitude, determinants, and implications for education, immigration, and international taxation policies in a global context. The authors employ a stylized growth model and three case studies—African medical brain drain, European scientists to the United States, and the Indian diaspora in IT—to analyze how brain drain channels affect sending countries. Empirical studies indicate that high‑skill emigration is a dominant migration pattern, yet it need not deplete a country’s human‑capital stock and can generate positive network externalities. JEL classification: F02, F22, J24, J61, O15.

Abstract

This paper reviews four decades of economics research on the brain drain, with a focus on recent contributions and on development issues. We first assess the magnitude, intensity, and determinants of the brain drain, showing that brain drain (or high-skill) migration is becoming a dominant pattern of international migration and a major aspect of globalization. We then use a stylized growth model to analyze the various channels through which a brain drain affects the sending countries and review the evidence on these channels. The recent empirical literature shows that high-skill emigration need not deplete a country's human capital stock and can generate positive network externalities. Three case studies are also considered: the African medical brain drain, the exodus of European scientists to the United States, and the role of the Indian diaspora in the development of India's information technology sector. We conclude with a discussion of the implications of the analysis for education, immigration, and international taxation policies in a global context. (JEL F02, F22, J24, J61, O15)