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ON THE MECHANICS OF THE BRAIN-DRAIN REDUCTION IN POOREST DEVELOPING COUNTRIES

DIANA LOUBAKI
경제연구소 (Hanyang Economic Research Institute)|2012.09|Journal of Economic Development|제37권 제3호|pp. 75-106|DOI 10.35866/caujed.2012.37.3.004

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Private EducationPublic EducationAbsorption CostAbroad Trained ProfessorDomestic Trained Professor
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초록

This article examines how endogenous human capital of the developed countries expressed by professors trained there and endogenous human capital of the developing countries expressed by their students, interact in the developing country's education sector to create higher quality goods. Private and public incentives to invest in human capital accumulation finance the employment of the skilled labor in the education sector, while non rival technology is a by-product of the education process. Both the optimal and the competitive equilibria define the efficient point able to lead the economy to the long-run growth. This point is also the locus where knowledge call policy as the required efficiency to reduce the brain drain phenomenon. Indeed, the model provides theoretical foundations of the relative lack of the high skilled labor in developing countries.

Abstract

This article examines how endogenous human capital of the developed countries expressed by professors trained there and endogenous human capital of the developing countries expressed by their students, interact in the developing country's education sector to create higher quality goods. Private and public incentives to invest in human capital accumulation finance the employment of the skilled labor in the education sector, while non rival technology is a by-product of the education process. Both the optimal and the competitive equilibria define the efficient point able to lead the economy to the long-run growth. This point is also the locus where knowledge call policy as the required efficiency to reduce the brain drain phenomenon. Indeed, the model provides theoretical foundations of the relative lack of the high skilled labor in developing countries.

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