Brain drain and economic growth: evidence of productivity growth from brain circulation

This paper analyzes the effect of so-called ‘brain drain’ on economic growth through channel in total factor productivity. We analyze panel data that measure severity brain drain, which are from IMD and U.S. National Science Foundation. Our analysis shows middle-income countries have more drain compared to group high-income countries. Also, emerging economies grow fast tend experience drain. results fixed effects regression models show has a significant positive impact growth, main is productivity growth. can be considered as evidence circulation’, one phenomena settlement talents advanced eventually help improve home country by sharing technologies skills around them with colleagues motherland. Therefore, strategy utilizing overseas resident should also considered, alongside brain-attraction policy.