LOST BRILLIANCE: THE IMPACT OF BRAIN DRAIN ON ECONOMIC GROWTH

AUTHOR(S) / AUTOR(I): Marija Radulović

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DOI: 10.46793/EBM24.197R

ABSTRACT / SAŽETAK:

The emigration of highly skilled individuals from their home countries, also known as the brain drain, has been a concern for policymakers and economists worldwide for a long time. The aim of the paper is to examine the effect of the emigration of highly skilled individuals on the economic growth in both source and recipient countries. The paper examines how the brain drain affects the economic growth in both the source and recipient countries, and it also considers factors such as the educational opportunities and the economic and social conditions. The study analyzes data from 2006 to 2022 for 25 OECD countries using the AutoRegressive Distributed Lag (ARDL) approach to estimate the effects of the brain drain on the economic growth. The results show that the emigration of highly skilled individuals from their home countries has a negative impact on the economic growth in the source country while a positive impact on the recipient country. The results contribute to the ongoing brain drain debate and offer valuable insights for policymakers and governments. By quantifying the effects of the brain drain on the economic growth, this research provides a basis for formulating strategies to mitigate its negative consequences and maximize its potential benefits.

KEYWORDS / KLJUČNE REČI:

brain drain, economic growth, OECD countries

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