Financial liberalization and the brain drain: A panel data analysis

Arbeitspapier

This paper explores the impact of financial liberalization on the migration of high skilled labor from 46 countries to the OECD, taken at five year intervals over the period 1985-2000. Using an exploratory factor analysis, we are able to distinguish between two dimensions of financial liberalization, namely the robustness of the markets and their freedom from direct government control. We find that a standard deviation improvement in the robustness of the source country financial sector magnifies the extent of brain drain by a factor of about four percentage points on the average. However, a corresponding increase in the freedom of the source country financial sector from government control has a modest negative impact on the emigration of high skilled labor and the effect is not statistically significant. Further, the impact of improved financial sector robustness on selection is more pronounced for non-OECD economies than for OECD nations, which experience virtually no impact on skilled emigration.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 5953

Classification and Topics

• Classification: Wirtschaft ; International Migration ; Economic Development: Human Resources; Human Development; Income Distribution; Migration ; Other Economic Systems: Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
• Subject: financial liberalization ; brain drain ; institutions ; immigration ; Finanzsektor ; Deregulierung ; Kapitalmarktliberalisierung ; Brain Drain ; Panel ; Schätzung ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mitra, Aniruddha ; Bang, James T. ; Wunnava, Phanindra V.
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/55051
• URN: urn:nbn:de:101:1-201109297524
• Last update: 10.03.2025, 11:44 AM CET