Exposé High Skilled Migration
The Effects of International Scholarships and Grants on High Skilled Migration in
Kyrgyzstan and Kazakhstan: Is it a Brain Drain, a Brain Gain or a Brain Circulation?
by Prof. Manfred Sargl
Motivation
My intention is to do further research on the topic of high skilled migration and economic
development caused by international scholarships and grants. In this text the nonjudgmental words
“high skilled migration” instead of “brain drain” (Bhagwati et al. 1974) and “country or origin”
instead of “sending or source country” is used.
The research questions are: What are the economic effects of high skilled migration? What are the
driving forces behind it? How can it be quantified?
The motivations to take Kyrgyzstan and Kazakhstan are personal experiences as a reviewer for
scholarship programmes in both countries and the fact that in the recent survey by the WEF
Kyrgyzstan is in the lowest percentile and Kazakhstan below the middle in the capacity to retain
talent (World Economic Forum 2015).
It is planned to look at the phenomenon of high skilled migration connected to international
scholarships or grants from an economic point of view, investigating the positive or negative
externalities caused by this migration.
Theoretical background
Many countries intensify their efforts to attract and hold foreign students, which causes human
capital externalities (Acemǒglu et al. 2000) in the countries of origin. Does the migration of talents
therefore mean a gain or a loss or of human capital investment by a country?
A significant migration of high skilled migration has economic effects on the economy on the labor
market and fiscal policy in the country of origin. It can be a severe drawback in a country’s effort to
obtain human resources and fiscal revenues for economic development (Beine et al. 2008). But high
skilled migration might have also positive externalities in countries of origin like stimulating
education, remittances, network effects from expatriates and knowledge effects from returnees.
(Boeri et al. 2012). Do specific trajectories of migration and development exist? Is development
slowing down with high skilled emigration (skill-setting curve) or is high skilled emigration slowing
down with development (migration-setting curve)? (De la Croix et al. 2012)
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Exposé High Skilled Migration
Is the actual incentive structure supporting or limiting student migration? By answering this question,
a distinction has to be made between the incentives to study abroad and the incentives to return.
What is the final destination after studying, the working destination? What factors might turn the
decision to temporary emigrate for studying in a permanent emigration for working?
The effects of high skilled migration on countries of origin should be investigated by estimating
human capital externalities and considering policy in countries of origin and destination. What are
the private and social returns to higher education? The private returns include the impacts of an
education level on an individual’s employment and income situation. The social returns or
externalities are the impacts an individual’s education has on the society.
The standard solution from economic theory to solve the problem of negative externalities is
internalizing it by regulation (caps), pricing (Pigouvian tax) or property rights (Coase theorem). To
what extend are these solutions applied in the policy responses on high skilled emigration? What
governmental and institutional arrangements exist, to reduce the negative externalities of high
skilled migration and what incentives exist to encourage the positive ones?
The focus of this research will be on the effects of scholarships and grants. Are international
scholarships a mean of labor policy (brain gain) or development policy (brain circulation)? Are they
implemented to attract foreign talents to the own country or educate talents capital for a foreign
country? What incentives are set to make the scholars return after studying abroad? What policy
options might turn a brain drain into a brain circulation? What are the experiences of scholarship
recipients?
Method
I’m thinking about a tracking study in Kyrgyzstan and Kazakhstan containing a descriptive and
analytical part. Data gathering should be in a mixed approach using the different lenses of the
qualitative and quantitative approach. Both have advantages and disadvantages. In this case it might
be useful to combine them and integrate qualitative elements in a quantitative study like carrying
out a preliminary qualitative study to gain information about the context and to focus the question of
the survey. In the quantitative part, it is intend to use census data and mico data.
References
Acemǒglu, D., Angrist J. (2000): How Large Are Human-Capital Externalities? Evidence from
Compulsory Schooling Laws, NBER Macroeconomics Annual, 2000, pp. 9–59.
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Exposé High Skilled Migration
Beine M., Docquier F., Rapoport H. (2008): Brain drain and human capital formation in developing
countries: winners and losers. Economic Journal, 2008, pp. 631–652.
Bhagwati, J., and Hamada K. (1974): The brain drain, international integration of markets for
professionals and unemployment: A theoretical analysis. Journal of Development Economics,
1974, pp. 19–42.
Boeri T., Brücker H., Docquier F., Rapoport H. (2012). Brain Drain and Brain Gain: The Global
Competition to Attract High-Skilled Migrants. Oxford University Press, 2012.
De la Croix, D., Docquier F. (2012): Do brain drain and poverty result from coordination failures?
Journal of Economic Growth, 2012, pp. 1–26.
World Economic Forum 2015: Global Competitiveness Report 2015.
Author details
Prof. Dr. Manfred Sargl
Fachbereich Betriebswirtschaft
Universität der Bundeswehr, München
Werner-Heisenberg-Weg 39
Building 41/100 Room 6105
85577 Neubiberg
Germany
Phone: +49 089 6004-4622/4255
Mail: [email protected]
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