Does Brain Drain Lead to Institutional Gain
نویسندگان
چکیده
This paper presents a cross country empirical investigation of impacts of skilled labor emigration on sending country’s institutional development. Based on Albert Hirschman’s “Exit and Voice” model, we analyze different channels through which emigration can affect institutions; using Djankov et al.’s “Institutional Possibility Frontier” framework, we assess emigration’s heterogeneous effects on different aspects of institutions. In empirical analysis, we construct an instrumental variable for skilled labor emigration rate using country’s geographical characteristics to identify the causal relationship. Basic results show that skilled labor emigration has a positive effect on “political” institutions but a negative effect on “economic” institutions for the sending country. JEL No.: F22 N10 P16 P48
منابع مشابه
The effect of institutional variables on brain drain in developing countries A case study of the countries of the MENA region
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