Do Brain Drain and Poverty Result from Coordination Failures?

David de la Croix and Frédéric Docquier

No 1009, RFBerlin Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin)

Abstract: We explore the complementarities between high-skill emigration and poverty in developing countries. We build a model endogenizing human-capital accumulation, high-skill migration and productivity. Two countries sharing the same characteristics may end up either in a "low poverty/low brain drain" path or in a "high poverty/high brain drain" path. After identifying country-specific parameters, we find that, for a majority of countries, the observed equilibrium has higher income than the other possible one. In 22 developing countries (including 20 small states with less than 2 million inhabitants), poverty and high brain drain are worsened by a coordination failure. For 25 other countries, a radical worsening of economic performances is feasible. These results are fairly robust to identification assumptions and the inclusion of a brain-gain mechanism.

Keywords: Public Good; Inequality Aversion; Immigration policy (search for similar items in EconPapers)
JEL-codes: D58 D6 D7 F22 F55 (search for similar items in EconPapers)
Date: 2010-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Do brain drain and poverty result from coordination failures? (2012)
Working Paper: Do brain drain and poverty result from coordination failures? (2012)
Working Paper: Do Brain Drain and Poverty Result from Coordination Failures? (2010)
Working Paper: Do Brain Drain and Poverty Result from Coordination Failures? (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:1009

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