Brain Drain and Productivity Growth: Are Small States Different?

20 Pages Posted: 23 May 2008

See all articles by Maurice Schiff

Maurice Schiff

Fellow, Institute for the Study of Labor (IZA)

Yanling Wang

Carleton University

Abstract

This paper examines the impact of North-South trade-related technology diffusion on TFP growth in small and large states in the South. The main findings are: i) TFP growth increases with North-South trade-related technology diffusion, with education, and with the interaction between the two, and it decreases with the emigration of skilled labor (brain drain)' ii) these effects are substantially (over three times) larger in small states than in large ones. Small states also exhibit a much higher brain drain level. Consequently, the brain drain generates greater losses in terms of TFP growth both because of its greater sensitivity to the brain drain and because the brain drain is substantially larger in small than in large states.

Keywords: trade, technology diffusion, brain drain, productivity growth

JEL Classification: F22, J61

Suggested Citation

Schiff, Maurice W. and Wang, Yanling, Brain Drain and Productivity Growth: Are Small States Different?. IZA Working Paper No. 3378, Available at SSRN: https://ssrn.com/abstract=1136183 or http://dx.doi.org/10.2139/ssrn.1136183

Maurice W. Schiff (Contact Author)

Fellow, Institute for the Study of Labor (IZA) ( email )

Bonn
Germany

Yanling Wang

Carleton University ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S 5B6
Canada

HOME PAGE: http://https://carleton.ca/npsia/people/yanling-wang/

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