KSP: An Examination of
Brain Drain in Romania
Dr. Changhui Kang
(Professor, Chung-ang University)
Facts on Brain Drain from Romania
▶<Figure
2> Stock of Romanian Migrants
2
Facts on Brain Drain from Romania
▶<Table
1> Stock of Romanian Migrants by Destination
Country/Year
Italy
Spain
Hungary
Israel
United States
Germany
Canada
Austria
United Kingdom
Belgium
Sweden
2000
69.999
33.044
144.150
124.128
113.855
2001
82.985
68.561
145.200
120.909
140.647
2002
95.039
137.834
146.457
117.334
156.080
2003
177.812
206.395
148.535
113.754
163.759
2004
248.849
312.099
152.700
110.434
139.373
31.200
60.165
39.149
41.990
44.691
46.613
6.216
11.776
7.662
11.954
8.718
12.172
9.459
12.343
10.628
12.536
3
2005
297.570
397.270
155.364
106.942
169.113
317.000
2006
342.200
510.983
170.430
103.742
154.958
318.000
82.645
47.840 48.198
16.000
12.628 15.322
12.748 12.910
2007
625.278
706.164
196.094
100.246
169.977
209.000
2008
678.534
762.163
202.231
96.924
172.476
168.000
2009
847.533
784.834
198.229
96.385
177.035
386.000
53.415
26.000
20.374
15.214
57.567
39.000
26.154
17.352
60.456
55.000
30.641
18.532
2010
813.037
810.471
189.055
182.099
171.253
134.911
96.209
56.932
53.081
21.634
16.184
Facts on Brain Drain from Romania
▶<Figure
4> Migration of Tertiary-Edu. People: 1990 and 2000
4
Facts on Brain Drain from Romania
▶<Figure
5> Migration of Tertiary-Edu. People by Gender, 2000
5
Facts on Brain Drain from Romania
▶<Figure
6> Medical Brain Drain, 2004
14
12
10
08
06
04
02
00
6
Economic Impacts of Brain Drain
▶Negative
impacts by early studies in 1970-80’s
- Reduction in the absolute size of skilled labor.
- Occupational shortages in certain sectors and professions (e.g.,
teachers, engineers, physicians, nurses).
- An increase in the technological gap b/w developing and developed
countries.
- A loss of domestic educational investments for those high-educated
and high-skilled.
7
Economic Impacts of Brain Drain
▶Important
assumptions of early studies
- No uncertainty regarding future migration
opportunities for the educated.
- A complete disconnection between emigrants and
their country of origin.
- Neither return migration nor remittances
8
Statistics on Return Migration
▶Return
Relative to Gross Migration Flows (OECD), 1990-2000
Return/Gross
1.60
1.40
1.20
1.00
0.72
0.80
0.60
0.40
0.41
0.20
0.00
9
Economic Impacts of Brain Drain
▶Potentially
positive impacts by recent studies
- Migration possibility encouraging human capital formation.
- Temporary migration resulting in return migration (ex. the
Hsinchu Science Park of Taiwan).
- Remittances.
- Diaspora and network effects (ex. India’s IT sector).
- Business and scientific networks and technology diffusion.
10
Empirical Evidence on Ultimate Impacts
▶Beine,
Docquier and Rapoport (2001, JDE; 2007, EJ)
- BDR (2001) analyze a cross-section of 37 developing countries.
BDR (2007) looks into a cross-section of 127 developing countries.
- A net positive impact of skilled migration prospects on gross
human capital levels.
- Simulation: Countries combining relatively low levels of HC and
low skilled emigration rates are likely to experience a net gain.
11
Empirical Evidence on Ultimate Impacts
▶Beine,
Docquier and Rapoport (2001, JDE; 2007, EJ)
12
Empirical Evidence on Ultimate Impacts
▶The
optimal rate of migration displays an inverse U-shaped
relationship with the source-country level of development.
13
Policy Recommendations
▶Policies
promoting positive impacts of BD
- Promote return migration.
- Ways to increase network effects.
14
Development Status Relative to the U.S.
▶Development
Status Relative to the U.S. (unit: per capita GDP, ppp)
70.0
60.0
50.0
40.0
Korea
Romania
30.0
20.0
10.0
0.0
1970
1975
1980
1985
1990
15
1995
2000
2005
2010
Korea’s Experiences
▶Korea’s
Policies in 1970-80s:
- Various restrictions on students studying abroad through 1970s.
- But, in 1981 studying abroad was liberalized.
16
Korea’s Experiences
▶<Figure
6> Number o Koreans Ph.D’s
17
Korea’s Experiences
▶Unique
Features:
- Various incentives were provided for those returning.
Ex. The Korea Institute of Science and Technology (KIST) in 1966; The
Korea Development Institute (KDI) in 1971.
- Active involvement of U.S.-trained scholars in government policy
makings.
18
Korea’s Experiences
19