Brain drain or brain gain? Evidence from a developing country

The old debate on whether high skilled migration from developing to developed countries has negative effects on the sending countries –brain drain– has received renewed attention  since substantial theoretical literature identifies potential channels as drivers of brain gain: human capital formation, remittances, return migration, and diasporas (Docquier and Rapoport, 2009, 2012; Stark et al., 1998; Beine et al., 2001)

Empirically, no conclusive results have yet been reached. There is some evidence on the positive effects of emigration on human capital accumulation in the sending country (Docquier and Rapoport, 2012); positive effects of technological diasporas[1] in India, China and Singapore (Basri and Box, 2010); but non-significant effect of remittances on the source country (Batista et al., 2007; Bredtmann et al., 2019; Gibson and McKenzie, 2011; Kangasniemi et al., 2007). The lack of robust evidence thus limits our understanding on the effects that high skilled international migration might have; leaving the open question on whether a country could experience brain drain or brain gain.

In this respect, the literature has been silent regarding the study of international migration of individuals holding a doctorate degree (Jewell and Kazakis, 2021). Specifically, individuals with a PhD and involved in research activities, scientists and academics, play a key role in the economic development of the countries; as their key role in the generation and dissemination of knowledge, innovation and technological advancement (Bender and Heywood, 2006; Kifle and Hailemariam, 2012). Researchers distinguishes as a relatively more mobile group, for whom migrations are not necessarily permanent and often driven by non-economic factors, like access to technology or infrastructure (Cañibano et al., 2017). These features make the factors driving researchers' international migration a compelling issue worthy of further study.

We assess whether Uruguay experiences brain gain or brain drain by exploring one channel pointed out by the literature, the return of doctorate holders to the home country. Specifically, we study the extent to which researchers holding a PhD with different migration status, i.e. never migrated for study motives, returned to Uruguay after PhD graduation, currently residing in a foreign country, associates to individual gains, proxied by labor income, and to social gains if those who return are more productive in terms of publications in academic journals.

            To pursue our objective, we exploit a unique dataset of Uruguayans holding a doctorate degree residing in Uruguay and abroad, the First Census of Doctorate-holder in Uruguay and Uruguayans living abroad and merged with the SCOPUS database to proxy productivity by academic publications, and elaborate researchers’ networks measures through co-authorships. Overall, our results stress that, although the country experiences brain gain through return migration, brain drain is also experienced as researchers residing abroad have higher productivity in terms of academic publications. Therefore, there is still room for policy interventions to attract researchers residing abroad, and to foster international cooperation between researchers in Uruguay and those residing abroad.

[1] The stock of people born in a country and living in another one  (Beine et al., 2011).