Brain Drain: A Management or a Property Problem?

Abstract

Brain drain occurs when skilled individuals leave their native countries. It is often argued that this phenomenon has strong negative effects on the countries of origin, preventing them from capitalizing on their investment in human capital formation and thus realizing a higher growth. This analysis shows that the negative consequences of brain drain have been overemphasized, mainly because of the confusion between capital and technology. It demonstrates that investments in human capital are possible and profitable in a free market. State intervention in education is responsible for the systematic misallocation of human capital in general, and for brain drain in particular.

Crisis Brain Drain: Short-term Pain/Long-Term Gain?

“…9 By contrast, the international migration of professionals presents a major challenge for sending countries, which are commonly also among the less highly developed ones. These countries see their position further weakened in this global competition, 10 whereas receiving countries are able to reap the benefits of a skilled labour force in which they have not invested. 11 Negative repercussions include a decrease in the average educational levels, 12 loss of public funds invested in the formation of this human capital 13 as well as, in many cases, loss of incoming physical capital, given that physical capital often follows human capital flows.…”

The external effect of a migrated star player on domestic sports league: an empirical analysis of three Asian leagues – Japan, Korea and Taiwan[1]

“…Human capital can be defined as "the skills the labor force possesses and is regarded as a resource or asset" (Goldin, 2016). In particular, international human capital loss has been discussed extensively in economic literature and is known as the term "brain drain" (Todaro and Smith, 2009;Docquier and Rapoport, 2005;Gl avan, 2008). Specifically, it is referred to as "the international flow of resources in the form of human capital, especially the migration of a skilled individual" (Gl avan, 2008).…”

“…The departure of such star players implies a significant drain of talents in the domestic league. This can lower the quality and competitiveness of the overall domestic league due to its human capital loss (Kiker, 1966;Gl avan, 2008;Groysberg et al, 2008). Also, the migrated star players provide more opportunity of watching a worldclass game to the domestic sports fans.…”

Problems Generated by Poor Support of Young Talented People

“…Since the 1960s, the phenomenon has captured the attention of many scholars in economics and politics and studies on the subject have become more and more numerous. The results lead to the conclusion that "brain drain" has two main negative effects: the country of origin loses human capital thus being devoid of the main engine for economic growth and at the same time losing much of the public investment made to educate that human capital (Glăvan, B., 2008;Marga, 2007;Vaknin, S., 2006;Lowell, Findlay, 2001). In this way the losses of the country from which they migrate are at least double: on the one hand these losses come from the diminishing of the productivity potential and on the other hand from the fiscal point of view, where not only the investments made in education will yield no return, but also the number people who will be future tax payers will narrow down.…”