Brain Drain and Productivity Growth: Are Small States Different?

Maurice Schiff and Yanling Wang ()
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Yanling Wang: Carleton University

No 3378, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines the impact of North-South trade-related technology diffusion on TFP growth in small and large states in the South. The main findings are: i) TFP growth increases with North-South trade-related technology diffusion, with education, and with the interaction between the two, and it decreases with the emigration of skilled labor (brain drain); ii) these effects are substantially (over three times) larger in small states than in large ones. Small states also exhibit a much higher brain drain level. Consequently, the brain drain generates greater losses in terms of TFP growth both because of its greater sensitivity to the brain drain and because the brain drain is substantially larger in small than in large states.

Keywords: trade; technology diffusion; productivity growth; brain drain (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2008-02
New Economics Papers: this item is included in nep-afr, nep-edu, nep-hrm, nep-int and nep-mig
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Published - published in: International Economic Journal, 2013, 27(2), 399-414

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