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KSP: An Examination of Brain Drain in Romania. Dr. Changhui Kang (Professor, Chung- ang University). Facts on Brain Drain from Romania. <Figure 2> Stock of Romanian Migrants. Facts on Brain Drain from Romania. <Table 1> Stock of Romanian Migrants by Destination.
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KSP: An Examination of Brain Drain in Romania Dr. Changhui Kang (Professor, Chung-ang University)
Facts on Brain Drain from Romania • <Figure 2> Stock of Romanian Migrants
Facts on Brain Drain from Romania • <Table 1> Stock of Romanian Migrants by Destination
Facts on Brain Drain from Romania • <Figure 4> Migration of Tertiary-Edu. People: 1990 and 2000
Facts on Brain Drain from Romania • <Figure 5> Migration of Tertiary-Edu. People by Gender, 2000
Facts on Brain Drain from Romania • <Figure 6> Medical Brain Drain, 2004
Economic Impacts of Brain Drain • Negative impacts by early studies in 1970-80’s - Reduction in the absolute size of skilled labor. - Occupational shortages in certain sectors and professions (e.g., teachers, engineers, physicians, nurses). - An increase in the technological gap b/w developing and developedcountries. - A loss of domestic educational investments for those high-educated and high-skilled.
Economic Impacts of Brain Drain • Important assumptions of early studies - No uncertainty regarding future migration opportunities for the educated.- A complete disconnection between emigrants and their country of origin.- Neither return migration nor remittances
Statistics on Return Migration • Return Relative to Gross Migration Flows (OECD), 1990-2000
Economic Impacts of Brain Drain • Potentially positive impacts by recent studies - Migration possibility encouraging human capital formation. - Temporary migration resulting in return migration (ex. the Hsinchu Science Park of Taiwan). - Remittances. - Diaspora and network effects (ex. India’s IT sector). - Business and scientific networks and technology diffusion.
Empirical Evidence on Ultimate Impacts • Beine, Docquier and Rapoport (2001, JDE; 2007, EJ) - BDR (2001) analyze a cross-section of 37 developing countries. BDR (2007) looks into a cross-section of 127 developing countries. - A net positive impact of skilled migration prospects on gross human capital levels. - Simulation: Countries combining relatively low levels of HC and low skilled emigration rates are likely to experience a net gain.
Empirical Evidence on Ultimate Impacts • Beine, Docquier and Rapoport (2001, JDE; 2007, EJ)
Empirical Evidence on Ultimate Impacts • The optimal rate of migration displays an inverse U-shaped relationship with the source-country level of development.
Policy Recommendations • Policies promoting positive impacts of BD - Promote return migration.- Ways to increase network effects.
Development Status Relative to the U.S. • Development Status Relative to the U.S. (unit: per capita GDP, ppp)
Korea’s Experiences • Korea’s Policies in 1970-80s: - Various restrictions on students studying abroad through 1970s. - But, in 1981 studying abroad was liberalized.
Korea’s Experiences • <Figure 6> Number o Koreans Ph.D’s
Korea’s Experiences • Unique Features: - Various incentives were provided for those returning.Ex. The Korea Institute of Science and Technology (KIST) in 1966; The Korea Development Institute (KDI) in 1971. - Active involvement of U.S.-trained scholars in government policy makings.
