A two-country model is proposed to examine the interrelation between the acquisition of human capital abroad and the international migration of skilled workers. Students in a domestic country face the choice of either studying and working at home, or undertaking studies abroad, offering variable...

In this paper we examine how a gap between levels of scientific knowledge in two countries affects the location of a firm?s fundamental R?D activities. When based in a less advanced country, a firm may decide to set up a research laboratory abroad in order to enrich the basic knowledge stock...