‘BRAIN DRAIN’ OR ‘BRAIN CIRCULATION’: EVIDENCE FROM OECD'S INTERNATIONAL MIGRATION AND R&D SPILLOVERS

Thanh Le

Scottish Journal of Political Economy, 2008, vol. 55, issue 5, 618-636

Abstract: This paper empirically investigates whether labour mobility can transfer technology across borders based on the panel cointegration method. Estimates of specifications on a cross‐section of 19 OECD countries during 1980–1990 lend strong support to this thesis. Data indicate that international labour movement may help transfer technology across borders in both directions: from donor countries to host countries and vice versa. This suggests that migration may more likely create a ‘brain circulation’ rather than a ‘brain drain’. In addition, human capital has a significant impact on the research and development (R&D) diffusion process as it enhances a country's capacity to learn from a foreign technology base.

Date: 2008
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https://doi.org/10.1111/j.1467-9485.2008.00468.x

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