Capital accumulation through studying abroad and return migration

Takumi Naito, Laixun Zhao

Research output: Contribution to journalArticle

Abstract

This paper examines the interplays among studying abroad, return migration and capital accumulation, in a dynamic general equilibrium model featuring heterogeneous ability. Households invest in education and make two migration decisions: whether to study abroad and subsequently whether to return home. The model predicts that the highest, middle and lowest-ability people choose respectively permanent migration, return migration and no migration. More interestingly, we find a novel migration cycle: returnees bring back learned-knowledge and over time, capital accumulates, attracting more return migration. Further, the usual “brain drain” in the literature can be turned into “brain gain”, by providing a subsidy to studying abroad and returning home.

Original languageEnglish
JournalEconomic Modelling
DOIs
Publication statusPublished - 2019 Jan 1

Fingerprint

Capital accumulation
Return migration
Brain gain
Education
Household
Dynamic general equilibrium model
Brain drain
Study abroad
Subsidies

Keywords

  • Brain gain
  • Capital accumulation
  • Heterogeneous ability
  • Return migration
  • Studying abroad

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Capital accumulation through studying abroad and return migration. / Naito, Takumi; Zhao, Laixun.

In: Economic Modelling, 01.01.2019.

Research output: Contribution to journalArticle

@article{56d74c4898eb44bcb971ecf2d41d2858,
title = "Capital accumulation through studying abroad and return migration",
abstract = "This paper examines the interplays among studying abroad, return migration and capital accumulation, in a dynamic general equilibrium model featuring heterogeneous ability. Households invest in education and make two migration decisions: whether to study abroad and subsequently whether to return home. The model predicts that the highest, middle and lowest-ability people choose respectively permanent migration, return migration and no migration. More interestingly, we find a novel migration cycle: returnees bring back learned-knowledge and over time, capital accumulates, attracting more return migration. Further, the usual “brain drain” in the literature can be turned into “brain gain”, by providing a subsidy to studying abroad and returning home.",
keywords = "Brain gain, Capital accumulation, Heterogeneous ability, Return migration, Studying abroad",
author = "Takumi Naito and Laixun Zhao",
year = "2019",
month = "1",
day = "1",
doi = "10.1016/j.econmod.2019.07.018",
language = "English",
journal = "Economic Modelling",
issn = "0264-9993",
publisher = "Elsevier",

}

TY - JOUR

T1 - Capital accumulation through studying abroad and return migration

AU - Naito, Takumi

AU - Zhao, Laixun

PY - 2019/1/1

Y1 - 2019/1/1

N2 - This paper examines the interplays among studying abroad, return migration and capital accumulation, in a dynamic general equilibrium model featuring heterogeneous ability. Households invest in education and make two migration decisions: whether to study abroad and subsequently whether to return home. The model predicts that the highest, middle and lowest-ability people choose respectively permanent migration, return migration and no migration. More interestingly, we find a novel migration cycle: returnees bring back learned-knowledge and over time, capital accumulates, attracting more return migration. Further, the usual “brain drain” in the literature can be turned into “brain gain”, by providing a subsidy to studying abroad and returning home.

AB - This paper examines the interplays among studying abroad, return migration and capital accumulation, in a dynamic general equilibrium model featuring heterogeneous ability. Households invest in education and make two migration decisions: whether to study abroad and subsequently whether to return home. The model predicts that the highest, middle and lowest-ability people choose respectively permanent migration, return migration and no migration. More interestingly, we find a novel migration cycle: returnees bring back learned-knowledge and over time, capital accumulates, attracting more return migration. Further, the usual “brain drain” in the literature can be turned into “brain gain”, by providing a subsidy to studying abroad and returning home.

KW - Brain gain

KW - Capital accumulation

KW - Heterogeneous ability

KW - Return migration

KW - Studying abroad

UR - http://www.scopus.com/inward/record.url?scp=85069662661&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85069662661&partnerID=8YFLogxK

U2 - 10.1016/j.econmod.2019.07.018

DO - 10.1016/j.econmod.2019.07.018

M3 - Article

AN - SCOPUS:85069662661

JO - Economic Modelling

JF - Economic Modelling

SN - 0264-9993

ER -