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

2021 ◽  
Vol 10 (2) ◽  
pp. 128-145
Author(s):  
Woosik Yu

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

2020 ◽  
pp. 6-12
Author(s):  
S. V. Savina

Today, a difficult situation has developed in the field of wages and incomes of the population, associated with the need to increase the level of wages and real incomes of the population, since low effective demand in the domestic market can become the main constraint on economic growth in the near future. The main goal of wage reform in modern conditions is to restore the role of wages as the main incentive for productivity growth and labor efficiency, which will have a positive impact on the functioning of production and will give an impetus to its further development.


2016 ◽  
Vol 2 (1) ◽  
pp. 158
Author(s):  
Lajda Bana

The world of today which seeks globalization, while the economic inequality, corruption, political instability, and moreover wars prevail, it is always associated with the movement of people towards what might be called the ‘best for their future’. This movement is not just a mechanical action, but is a phenomenon associated with social, economic and political consequences not only to the country of origin but also for the host country. The departure of the people from their land is a well-known and proven phenomenon mainly of the developing countries. This phenomenon includes also the so-called brain drain emigration, the departure of skilled people, professionals and researchers from their own country to other places. The brain drain is not only a phenomenon that belongs to developing countries, or former communist states, or those countries in war, but it can also affect the developed Western countries. Brain drain does not always constitute a brain gain in the host country. In most of the cases, people who have to leave the countries in political instability or former communist countries, even if they are qualified and holders of university degrees, they are obliged to work in humble jobs which can be simply exercised by persons without university qualifications. Consequently, the brain drain phenomenon is not automatically turned into a benefit 'brain gain' for the host country; on the contrary, it might even be turned into the so-called brain-waste. A social challenge in this context remains the turn of "brain drain" into "brain gain" or "brain circulation". Therefore, one of the current priorities for governments is to create effective economic and social conditions which would enhance the integration of the graduates, researchers and professionals into their national and regional markets


2020 ◽  
Vol 12 (19) ◽  
pp. 7965
Author(s):  
Oluyomi A. Osobajo ◽  
Afolabi Otitoju ◽  
Martha Ajibola Otitoju ◽  
Adekunle Oke

This study explored the effect of energy consumption and economic growth on CO2 emissions. The relationship between energy consumption, economic growth and CO2 emissions was assessed using regression analysis (the pooled OLS regression and fixed effects methods), Granger causality and panel cointegration tests. Data from 70 countries between 1994–2013 were analysed. The result of the Granger causality tests revealed that the study variables (population, capital stock and economic growth) have a bi-directional causal relationship with CO2 emissions, while energy consumption has a uni-directional relationship. Likewise, the outcome of the cointegration tests established that a long-run relationship exists among the study variables (energy consumption and economic growth) with CO2 emissions. However, the pooled OLS and fixed methods both showed that energy consumption and economic growth have a significant positive impact on CO2 emissions. Hence, this study supports the need for a global transition to a low carbon economy primarily through climate finance, which refers to local, national, or transnational financing, that may be drawn from public, private and alternative sources of financing. This will help foster large-scale investments in clean energy, that are required to significantly reduce CO2 emissions.


Paradigm ◽  
2019 ◽  
Vol 23 (2) ◽  
pp. 117-129
Author(s):  
Olufemi Adewale Aluko ◽  
Funso Tajudeen Kolapo ◽  
Patrick Olufemi Adeyeye ◽  
Patrick Olajide Oladele

This study examines the impact of financial risks in form of credit, interest rate and liquidity risk on the profitability of systematically important banks in Nigeria over the period from 2010 to 2016. The fixed effects regression model is estimated with Driscoll–Kraay standard errors in order to produce results that are robust to heteroscedaticity, autocorrelation, cross-sectional dependence and temporal dependence. After controlling for some bank-specific, industry-specific, macroeconomic and institutional factors, the empirical results show that credit and liquidity risks have a positive impact on bank profitability while interest rate does not have an impact. The results are robust to alternative measures of profitability.


2019 ◽  
Vol 129 (622) ◽  
pp. 2390-2423 ◽  
Author(s):  
Luca Flabbi ◽  
Mario Macis ◽  
Andrea Moro ◽  
Fabiano Schivardi

Abstract We investigate the effects of female executives on gender-specific wage distributions and firm performance. Female leadership has a positive impact at the top of the female wage distribution and a negative impact at the bottom. The impact of female leadership on firm performance increases with the share of female workers. We account for the endogeneity induced by non-random executives’ gender by including firm fixed-effects, by generating controls from a two-way fixed-effects regression and by using instruments based on regional trends. The findings are consistent with a model of statistical discrimination in which female executives are better at interpreting signals of productivity from female workers. This suggests substantial costs of women under-representation among executives.


2020 ◽  
Vol 19 (3) ◽  
pp. 415-435
Author(s):  
Jamie M. Sommer

Abstract Carbon dioxide (CO2) emissions are rapidly increasing across the world. While national governments are usually seen as having the power, authority, and ability to make significant reductions in their CO2 outputs, cross-national research rarely focuses on the institutional structures of states that moderate their CO2 emissions. Previous research that focuses on internal state factors largely focus on democracy and find wildly conflicting results. This research argues that clientelism is a missing piece of the puzzle in explaining how democracy impacts CO2 emissions. Building on the extant contradictory research, the present study uses two-way fixed effects regression analysis for 150 nations from 1971-2014 to understand how the interaction between clientelism and democracy impacts CO2 emissions. The findings reveal that controlling for clientelism reduces CO2 outputs more in high-income and low-income nations with higher levels of participatory democracy. However, the interaction is not statistically significant for all nations, nor for middle-income nations. These results suggest that reducing clientelist relationships in nations with high- and low-incomes, but not middle incomes will make participatory democracies more effective at reducing CO2 emissions.


2000 ◽  
Vol 33 (3) ◽  
pp. 319-349 ◽  
Author(s):  
MARK J. GASIOROWSKI

In this study, the author examines how inflation and economic growth differ in more- and less-democratic regimes and in new and mature democracies. The analysis is based on a panel research design featuring annual data from a large sample of underdeveloped countries and two-way, fixed-effects regression analysis. The author's central finding is that more-democratic countries have higher inflation and slower growth than less-democratic countries. Inflation apparently is higher than more-democratic countries mainly because they have higher fiscal deficits and faster wage growth; this higher inflation marginally reduces economic growth in these countries. The author also finds that new and mature democracies do not have significantly different inflation and growth rates. The findings suggest that unrestrained political participation and the resulting demands placed on state officials undermine democratic performance.


2021 ◽  
Vol 10 (3) ◽  
pp. 217-228
Author(s):  
Thi Xuan Huong Tram ◽  
Nguyen Thi Thanh Hoai

This paper aims to find out the relationship between systemic risk in Vietnam and the effects of macroeconomic factors, including exchange rate, interest rates, and economic growth. We collect data from the Vietnamese stock market, specifically 29 listed financial firms (banks, insurance companies, and securities firms) for the period 2010-2018. The analysis is performed in two steps including systematic risk measurement in Vietnam based on the Systemic Expected Shortfall (SES) method and providing evidence from analysis related to the risk determinants assessment. Besides ordinary least squares (OLS) methods, we make use of fixed-effects (FEM) estimations, random-effects (REM) estimations, and system generalized method of moments (SGMM). The empirical evidence in this paper indicates that economic growth has a negative relationship on systemic risk in Vietnam while the exchange rate has a positive impact on systemic risk, and the interest rate has a negative relationship on systemic risk in Vietnam. Future studies can address the effects of interest rate on systemic risk during this period.


2021 ◽  
Author(s):  
jiajianghui li ◽  
Tianjia Guan ◽  
Qian Guo ◽  
Guannan Geng ◽  
Huiyu Wang ◽  
...  

Landscape fire smoke (LFS) has been associated with reduced birthweight, but evidence from low and middle income countries (LMICs) is rare. Here, we present a sibling matched case control study of 227,948 newborns to identify an association between fire sourced fine particulate matter (PM2.5) and birthweight in 54 LMICs from 2000 to 2014. We selected mothers from the geocoded Demographic and Health Survey with at least two children and valid birthweight records. Newborns affiliated with the same mother were defined as a family group. Gestational exposure to LFS was assessed in each newborn using the concentration of fire sourced PM2.5. We determined the associations of the within group variations in LFS exposure with birthweight differences between matched siblings using a fixed effects regression model. Additionally, we analyzed the binary outcomes of low birthweight (LBW) or very low birthweight (VLBW). According to fully adjusted models, a 1 ug/m3 increase in the concentration of fire sourced PM2.5 was significantly associated with a 2.17 g (95% confidence interval [CI]: 0.56, 3.77) reduction in birthweight, a 2.80% (95% CI: 0.97, 4.66) increase in LBW risk, and an 11.68% (95% CI: 3.59, 20.40) increase in VLBW risk. Our findings indicate that gestational exposure to LFS harms maternal health.


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