Sunday, November 1, 2009

Brain Drain or Brain Gain?

This article in Foreign Policy confirms what economists have said about skilled migration for the last decade or so: It helps both the recipient and the source country. One of the ways they acknowledge emigration to help is through remittances.  However, the last point, "Just as fears about possible negative effects of brain drain are typically overblown, so is the hype over the ability of countries to tap their diaspora to set up trade and investment," is not consistent with recent research. There are a few papers out showing a strong positive link between skilled emigration and FDI flows in the other direction, including one that a couple of guys named Bang and MacDermott are trying to get published.

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