American Journal of Economics, Finance and Management
Articles Information
American Journal of Economics, Finance and Management, Vol.1, No.5, Oct. 2015, Pub. Date: Aug. 12, 2015
Poverty Reduction, Brain Drain and Development
Pages: 537-553 Views: 2799 Downloads: 903
[01] Diana Loubaki, Department of Fundamental Analysis in Economics, University Marien N'Gouabi, Brazzaville, Congo.
The aim of this article is to study development in an extended brain drain model i.e when labour is heterogenous. An endogenous growth model with probability of migration is used to highlight how incentives to increase both human capital and ability at work are able to boost development in poorest countries. On the basis of visa eligibility purposes, finally, on the one hand, the skilled labour is able to adapt new innovations in the production sector and improves goods quality over time, making the return probability no more a fundamental development tool. On the other hand, the unskilled labour ability level fluctuates around the average world threshold improving simple task performance when home and funds transfer increase when in the rich country. Indeed, development is a positive exchange trade among poor and rich countries highlighted respectively by per-capita income increase and pension funds financial support. Therefore, convergence may occur between developed and developing countries because knowledge is a jumping function.
Labour Heterogeneity, Labour Mobility, Human Capital, Funds Transfers, Brain Drain, Poverty Reduction
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