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Do Brain Drain and Poverty Result from Coordination Failures?

David de la Croix () and Frédéric Docquier ()

No 1009, CReAM Discussion Paper Series from Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London

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: F22 F55 D58 D6 D7 (search for similar items in EconPapers)
Date: 2010-05
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Related works:
Journal Article: Do brain drain and poverty result from coordination failures? (2012) Downloads
Working Paper: Do brain drain and poverty result from coordination failures? (2012) Downloads
Working Paper: Do Brain Drain and Poverty Result from Coordination Failures? (2010) Downloads
Working Paper: Do Brain Drain and Poverty Result from Coordination Failures? (2010) Downloads
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