A Model of Emigration Networks and Brain Gain

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)peer-review

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Author(s)

  • Chia Hui LU
  • Laixun ZHAO

Related Research Unit(s)

Detail(s)

Original languageEnglish
Publication statusPublished - 2007

Abstract

This paper explores the role of migration networks in promoting trade and home country development. We model the phenomenon that the home country may transit from a mainly agrarian economy to a manufacturing one, if the emigration networks can sufficiently help home firms access foreign markets. As the development in the home country kicks off, some talented emigrants may return to their home country to start new businesses, resulting in “reverse migration”. It is shown that such “reverse migration” may result in “brain gain” in the long run when migration networks become strong. We also find that sufficient knowledge spillovers or remittance may also bring “brain gain”. In particular, we can identify two equilibria. One is that the most talented emigrate, and the other equilibrium is that the most talented choose to stay home as managers while the intermediate-talented emigrate.

Citation Format(s)

A Model of Emigration Networks and Brain Gain. / LU, Chia Hui; ZHAO, Laixun.

2007.

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)peer-review