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This paper reviews the extent to which highly (tertiary) educated emigrants from developing countries represent an economic loss or 'brain drain'. (1) It systematically reviews available data on international mobility, (2) then it examines the economic analysis of direct effects of brain drain on economic development, and it (3) finishes the review by considering the major favourable feedback effects generated by high skilled emigration. Ultimately, the empirical literature on the brain drain is disappointing in the sense that much of it depends upon the assumptions of theoretical, albeit mathematically sophisticated, economic models. Empirical analysis or the modelling of statistical data is relatively rare. And to cap it all, the offsetting, cumulative effects of ongoing contact, return, transfer, and investment are generally not included in the theoretical literature, much less are they well-documented or measured making any assessment difficult. In short, there is plenty of evidence that concerns with a 'brain drain' are legitimate, but there is little empirical means of establishing which countries are most at risk, much less which countries are most likely to benefit.

Excerpts from executive summary.

This report is part of a series of studies conducted by the International Labour Office under the DFID-sponsored project on 'Skilled labour migration (the 'brain drain') from developing countries: analysis of impact and policy issues'. Available reports are indexed from TD/TNC 86.109 to TD/TNC 86.119. Show less

This summary report ‘addresses issues of the impact of high skilled emigration on developing countries and the policy mixes and options available to both receiving and sending countries to harness its benefits’. It argues that the feedback or indirect effects of skilled migration often outweigh the disadvantages for developing countries, with the challenge being to maximise these benefits. The report begins by exploring the basic demography of high skilled emigration from developing to developed countries and then reviews research literature on high skilled mobility, focusing on its direct and induced impacts on the economic growth of developing countries, its feedback effects that create opportunities from the outflow, and its role in globalisation and the expansion of service industries. The trends in major classes of skill mobility are highlighted. Policy responses by developing countries are explored and the report concludes by suggesting some general policy options that developed receiving countries could adopt to address high skilled mobility from developing countries.

This report is part of a series of studies conducted by the International Labour Office under the DFID-sponsored project on ‘Skilled labour migration (the ‘brain drain’) from developing countries: analysis of impact and policy issues’. Available reports are indexed from TD/TNC 86.109 to TD/TNC 86.119. Show less

This review describes 'Six Rs' or policies that can facilitate feedback effects and, thereby, take advantage of high skilled emigration. Calls in the 1970s for the reparation of the direct loss through a brain drain tax have long since been disregarded as a viable way of offsetting the adverse effects of high skilled emigration. Three of the 'Rs' are variants of migration policy, e.g. return, restriction, or recruitment. Restrictive admission (or exit) policies touch on the rights of the individual international migrant, as well as run the risk of impeding positive feedback effects. Policies that encourage return migration may be in the best long-term interest of the migrant source countries, but almost no policymakers in receiving countries as yet justify temporary admission standards on such a basis. For those who remain abroad, there are resourcing policies. These 'diaspora options' rely mainly on the creation of expatriate networks that return knowledge to the home country, e.g., that facilitate the transfer of technology. To date, most expatriate networks are autonomously founded and there may be a role for the expanded involvement of both source and receiving countries. Further, remittances are a significant source of income for developing countries. Outreach to skilled expatriates can take advantage of the greater likelihood that they will save in foreign currency accounts in the home country, invest in remittance backed bonds, or invest in entrepreneurial activities when incentives such as reduced tariffs or income tax breaks are offered. Finally, grand policies of retention are likely to be the best long run response to a brain drain. The most active policies have and continue to be academic ventures based on regional and international cooperation where receiving countries play an active role. Additionally, many developing countries have individually, or in the context of regional accords, targeted ICT development as a means of getting on the information-age bandwagon. Such projects promise to be a fruitful way of stimulating economic growth and reducing permanent out migration of highly educated natives.

Excerpt from executive summary.

This report is part of a series of studies conducted by the International Labour Office under the DFID-sponsored project on 'Skilled labour migration (the 'brain drain') from developing countries: analysis of impact and policy issues'. Available reports are indexed from TD/TNC 86.109 to TD/TNC 86.119. Show less

This bibliography is part of a series of studies conducted by the International Labour Office under the DFID-sponsored project on 'Skilled labour migration (the 'brain drain') from developing countries: analysis of impact and policy issues'. It is presented in seven sections. They are: Economic analyses and policy implications; Policy implications; Skilled migration processes and policies; Policy issues and skilled migration; Developed countries - news reports; Developing countries - news reports; Canadian brain drain.

Available reports from this project are indexed from TD/TNC 86.109 to TD/TNC 86.119. Show less