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While the contemporary literature has generally favored an optimistic view of skilled emigration as being beneficial to economic growth, empirical analysis that directly tests the thesis is relatively scarce; and what exists in often ambiguous with respect to its findings. This paper takes a step towards filling this void. A seemingly unrelated regression (SUR) preformed on a panel of 155 countries with data taken quinquennially over the period 1975-2000 allows us to identify two channels of impact of brain drain on economic growth. In the first 'indirect' channel, we found a strong positive correlation between levels of brain drain and human capital formation. It is then the case that brain drain benefits the sending countries since human capital is positively related to growth. In the second 'direct' channel, we, however, found a negative impact of brain drain on economic growth.
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Gao, Yuzhong, "Skilled Migration and Economic Growth: A Cross-National Analysis" (2013). Senior Projects Spring 2013. 61.
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