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International Trade in Education, Skilled Migration and Economic Growth

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  • Lan Hong Thi Dang
  • Russell H Hillberry

Abstract

International trade in education is a large and growing phenomenon. We investigate the consequences of such trade for economic growth in developing countries using a model with a role for trade costs and endogenous emigration of students educated abroad. The developing country’s comparative disadvantage in education means that trade allows it to acquire human capital at a lower opportunity cost, and raise its steadystate growth rate. If a sufficiently large share of students remain abroad, however, the net effect of international trade and skilled migration reduces steady-state growth rates below their autarky levels

Suggested Citation

  • Lan Hong Thi Dang & Russell H Hillberry, 2008. "International Trade in Education, Skilled Migration and Economic Growth," Department of Economics - Working Papers Series 1055, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:1055
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    References listed on IDEAS

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    4. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
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