Does the brain drain have negative or positive effect on the development and growth of those left behind? This paper shows the empirical and theoretical relevance of the phenomenon and reviews both the traditional literature and recent contributions on the effects of the brain drain. The first generation models considered the brain drain harmful for the country of origin, underlining effects on wages, employment and growth, whilst the more recent literature shows positive effects on the population and holds that the brain drain increases the accumulation of human capital, as major driver of economic growth. Return migration boosts the positive effects of the brain drain.
Keywords: International migration, Human capital, Growth
Jel Code: F220, J240, J610