North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth : Are Small States Different?
The economies of small developing states tend to be more fragile than those of large ones. This paper examines this issue in a dynamic context by focusing on the impact of the brain drain on North-South trade-related technology diffusion and total...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090130100805 http://hdl.handle.net/10986/4025 |
| Summary: | The economies of small developing states
tend to be more fragile than those of large ones. This paper
examines this issue in a dynamic context by focusing on the
impact of the brain drain on North-South trade-related
technology diffusion and total factor productivity growth in
small and large states in the South. There are three main
findings. First, productivity growth increases with
North-South trade-related technology diffusion and education
and the interaction between the two, and decreases with the
brain drain. Second, the impact of North-South trade-related
technology diffusion, education, and their interaction on
productivity growth in small states is more than three times
that for large countries, with the negative impact of the
brain drain thus more than three times greater in small than
in large states. And third, the greater loss in productivity
growth in small states has two brain drain-related causes: a
substantially greater sensitivity of productivity growth to
the brain drain, and brain drain levels that are more than
five times greater in small than in large states. |
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