Who is afraid of the brain drain? Human capital flight and growth in developing countries

This paper presents a non-technical review of the recent theoretical and empirical literature on the growth effects of the brain drain in developing countries. It focuses on the central argument of the 'new brain drain literature', namely, that migration prospects may well foster human capital formation at home even after emigration is netted out. Other channels through which highly-skilled migrants continue to impact on their home country's economy are also reviewed, including remittances, return migration, and the role of migrants' networks in promoting bilateral trade and knowledge diffusion.