High skilled emigration and human capital: A theoretical and empirical essay for the case of Middle-Income Countries

Mohamed Kouni

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this paper is to investigate the effect of high-skilled emigration on human capital investment in some middle-. Hence, we extend the Solow model by taking into account the net effect of high-skilled emigration. The theoretical result showed that if the ratio of the emigrant human capital on the resident human capital is inferior to critical level, and in the case of strong selectivity adopted, the high skilled emigration can generate an important quantitative brain gain as well as the possibility of qualitative brain gain. At the empirical level, new approximations are proposed. Then, based on these approximations a beta convergence model is re-estimated. The results showed that the emigration prospects have a positive and highly significant effect. The elasticity of the human capital investment with respect to emigration prospects varies from about 1.7% to about 2%.

Keywords: Brain drain; human capital; development; instrumental variables-GMM method (search for similar items in EconPapers)
JEL-codes: F22 J24 O15 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-int and nep-mig
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Citations: View citations in EconPapers (1)

Published in International Journal of Economics and Research 6.7(2016): pp. 87 -107

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:78320

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