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Do Brain Drain and Poverty Result from Coordination Failures?

David de la Croix () and Frédéric Docquier ()

No 2010016, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

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: Brain drain; Development; Multiple equilibria; Coordination failure (search for similar items in EconPapers)
JEL-codes: F22 O11 O15 C62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mig
Date: 2010-05-04
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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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