The effect of institutional variables on brain drain in developing countries A case study of the countries of the MENA region

Introduction: Despite the importance of specialized manpower in leading a country's economy, statistics show the departure of a large number of thinkers in various fields of science who for some reason prefer to live in developed countries to stay in their own country. In fact, brain drain represents the flow of human capital in which skills are transferred. Therefore, in this study, we will examine the effect of institutional variables on brain drain in developing countries. Method: In this study, the immigration data of the countries of the MENA region are selected as immigrant send countries and the United States is selected as an immigrant country during the years 2002-2018 have been used and the migration statistics based on nationality from the International Migration Database (OECD.Stat) Has been collected. The software used is Eviews10 and the econometric method is the Generalized Method of Moment (GMM). Findings: The logarithm of the first lag of brain drain (0.554837), government effectiveness (0.015586) and freedom of expression (0.012297) had a positive effect on brain drain from developing countries to the USA and the rule of law (-0.027964), Economic growth (-0.001738), corruption control (-0.007549) and the quality of law (-0.004503) have had a negative effect on brain drain and elite migration. Also, The Arelano-Band autocorrelation test confirms the model dynamics and the absence of much higher autocorrelation in the model error component. Discussion: considering the impact of the rule of law, control of corruption, economic growth and the quality of laws on reducing elite immigration, the necessary institutional reforms to improve property rights, contractualization, social security, competition, transparency and quality of law in the field of economic activities is suggested. Therefore, countries should prepare comprehensive programs to create a dynamic and active environment for human resources and provide the ground for creativity and innovation for the elites to prevent them from leaving their country.