Macroeconomic Determinants of Brain Drain in the Era of Globalization: Evidence from Pakistan
Keywords:brain drain, governance, financial stability, infratsructure, social openness, living standard, ADRL
The Brain Drain (BD) is a cynosure of all the eyes because it has become a grave issue for Pakistan. Every year, thousands of students graduate from colleges and universities. Our markets cannot accommodate such a huge number of graduates so; these people prefer to migrate to other parts of the world. This paper attempts to investigate the factors affecting brain drain in Pakistan by utilizing the data for 1990 to 2018. Indices of variables are constructed in this study to measure the potential of factors causing migration from Pakistan to other developed economies. Secondary data has been taken from the World Development Indicator (WDI) and the Bureau of Emigration and Overseas Employment (BEOE). This study finds that in long run governance, financial stability, the standard of living, and infrastructure have a negative and significant impact on the dependent variable (Brain drain). Social openness does not show a significant impact on brain drain in the long run. This study concludes that brain drain in developing nations is a serious matter and it should be addressed on a priority basis. This study helps policymakers to develop policies to reduce the migration of highly skilled labour.
Afzal, S., Iqbal, H., & Inayay, M. (2012). Terrorism and extremism as a non-traditional security threat post 9/11: Implications for Pakistan's security. International Journal of Business and Social Science, 3(24), 194-203.
Ahmad, M. H., Alam, S., Butt, M. S., & Haroon, Y. (2003). Foreign direct investment, exports, and domestic output in Pakistan. The Pakistan Development Review, 42(4), 715-723.
Ahmad, N., Hussain, Z., Sial, M. H., Hussain, I., & Akram, W. (2008). Macroeconomic determinants of international migration from Pakistan. Pakistan Economic and Social Review, 46(2), 85-99.
Akusoba, C. (2014). Understanding brain drain in Nigerian universities. http://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=4610804&fileOId=4610811
Ali, A., Mujahid, N., Rashid, Y., & Shahbaz, M. (2015). Human capital outflow and economic misery: Fresh evidence for Pakistan. Social Indicators Research, 124(3), 747-764.
Altaf, M., Atoofa, K., & Ali, H. (2015). Two-Fold Aspect of Brain Drain in Pakistan: An Empirical Investigation. J. Asian Dev. Stud, 4(4), 200-206.
Andrews, L., Higgins, A., Andrews, M. W., & Lalor, J. G. (2012). Classic Grounded Theory to Analyse Secondary Data: Reality and Reflections. Grounded Theory Review, 11(1), 12-26.
Arouri, M., Rashid, Y., Shahbaz, M., & Teulon, F. (2014). Short and long run determinants of brain drain: Evidence from Pakistan. http://v6.ipag.fr/wp-content/uploads/recherche/WP/IPAG_WP_2014_113.pdf
Bahmani-Oskooee*, M., & Rehman, H. (2005). Stability of the money demand function in Asian developing countries. Applied Economics, 37(7), 773-792.
Bang, J. T., & Mitra, A. (2011). Brain drain and institutions of governance: Educational attainment of immigrants to the US 1988-1998. Economic Systems, 35(3), 335-354.
Bhagwati, J., & Hamada, K. (1974). The brain drain, international integration of markets for professionals and unemployment: a theoretical analysis. Journal of Development Economics, 1(1), 19-42.
Bhagwati, J. N. (1979). International migration of the highly skilled: economics, ethics and taxes. Third world quarterly, 1(3), 17-30.
Brown, R. L., Durbin, J., & Evans, J. M. (1975). Techniques for testing the constancy of regression relationships over time. Journal of the Royal Statistical Society: Series B (Methodological), 37(2), 149-163.
Busse, M., & Hefeker, C. (2007). Political risk, institutions and foreign direct investment. European Journal of Political Economy, 23(2), 397-415.
Canning, D., & Pedroni, P. (2004). The effect of infrastructure on long run economic growth. Harvard University, 99(9), 1-30. Working Paper. https://web.williams.edu/Economics/wp/pedroniinfrastructure.pdf
Chaichian, M. A. (2012). The new phase of globalization and brain drain. International Journal of Social Economics, 39(1/2), 18-38. http://doi.org.10.1108/03068291211188857
Dar, A. A., Bhatti, H. M. A., & Muhammad, T. (2017). FDI and Economic Growth in Pakistan: A Sector Wise Multivariate Cointegration Analysis. Pakistan Development Review, 56(4), 67-90.
Davis, T., & Hart, D. M. (2010). International Cooperation to Manage High?Skill Migration: The Case of India-US Relations. Review of Policy Research, 27(4), 509-526.
Dovlo, D. (2005). Taking more than a fair share? The migration of health professionals from poor to rich countries. PLoS Med, 2(5), e109. https://doi.org/10.1371/journal.pmed.0020109
Durrani, A., & Mir, A. H. (2007). Pakistan Infrastructure Implementation Capacity Assessment. World Bank, Pakistan. https://openknowledge.worldbank.org/handle/10986/7671
Eggert, W., Krieger, T., & Meier, V. (2007). Education, unemployment and migration. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1021958
Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: representation, estimation, and testing. Econometrica: Journal of the Econometric Society, 55(2), 251-276.
Farooq, S., & Ahmad, E. (2017). Brain Drain from Pakistan: An Empirical Analysis. Forman Journal of Economic Studies, 13, 55-81.
Gertner, R. K., Berger, K. A., & Gertner, D. (2007). Country-dot-com: Marketing and branding destinations online. Journal of Travel & Tourism Marketing, 21(2-3), 105-116.
Graham, M., Schroeder, R., & Taylor, G. (2013). Re: search. New Media & Society, 15(8), 1366-1373.
Hashmi, M. A., Zeeshan, A., Mehmood, T., Naqvi, S. A. H., & Shaikh, F. M. (2012). Factors driving brain drain in Pakistan: an exploratory view. J Asian Busi Strat, 2, 7-20.
Hussain, S. B. (2004). Encyclopedia of Capitalism: Facts On File, Inc. http://126.96.36.199:8080/dspace/handle/DNULIB_52011/2547
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of economic dynamics and control, 12(2-3), 231-254.
Johnston, M. P. (2017). Secondary data analysis: A method of which the time has come. Qualitative and Quantitative Methods in Libraries, 3(3), 619-626.
Kapur, D., & McHale, J. (2005). The global migration of talent: What does it mean for developing countries. CGD Brief (Washington: Center for Global Development). https://www.voced.edu.au/content/ngv:62692
Karikari, N. K., Mensah, S., & Harvey, S. K. (2016). Do remittances promote financial development in Africa? SpringerPlus, 5(1), 1-21.
Khan, R., Khan, S., & Zia, Y. E. (2012). Causes and impact of immigration on Pakistani young people on Pakistan and on host country (Great Britain). European Journal of Business and Social Sciences, 1(8), 91-98.
Kobayashi, S. (2014). The Effect to the Economic Growth by the Labor Migration: from the Viewpoint of the Stock of the Human Capital. Graduate School of Tokyo University of Foreign Studies. http://www.tufs.ac.jp/st/club/unohp/syuuron_zenbun_kobayashi2013.pdf
Kousar, S., Rehman, S., & Rehman, A. (2014). Male migration and problems face by the family left behind: A case study of Thesil Daska. International Journal for Innovation Education and Research, 2(7), 20-42.
Kumar, R. R. (2011). Do remittances, exports and financial development matter for economic growth? A case study of Pakistan using bounds approach. Journal of International Academic Research, 11(1), 18-27.
Leon?Ledesma, M., & Piracha, M. (2004). International migration and the role of remittances in Eastern Europe. International Migration, 42(4), 65-83.
Li, Y., & Li, Z. (2008). Grey Relational Analysis between Infrastructure Investment and Economical Growth in China from 1997 to 2006. In Proceedings of 2008 International Conference on Construction & Real Estate Management (Vol. 1, pp. 564-567).
Lif, O. (2016). Migration in the internet age: The 21st century: When refugees went online. https://lup.lub.lu.se/student-papers/search/publication/8873467
Lucas, R. E. (2005). International migration to the high-income countries: Some consequences for economic development in the sending countries. Are we on track to achieve the Millennium Development Goals. 127-181.
Macdonald, R. (2008). An Examination of Public Capital's Role in Production. Available at SSRN 1371042. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1371042
Mackey, T., & Liang, B. (2013). Restructuring brain drain: strengthening governance and financing for health worker migration. Global health action, 6(1), 1-7
Mamatzakis, E. C. (2008). Economic performance and public infrastructure: an application to Greek manufacturing. Bulletin of Economic Research, 60(3), 307-326.
Massey, D. S., Arango, J., Hugo, G., Kouaouci, A., & Pellegrino, A. (1999). Worlds in Motion: Understanding International Migration at the End of the Millennium: Understanding International Migration at the End of the Millennium: Clarendon Press.
Mayda, A. M. (2010). International migration: a panel data analysis of the determinants of bilateral flows. Journal of Population Economics, 23(4), 1249-1274.
Misau, Y. A., Al-Sadat, N., & Gerei, A. B. (2010). Brain-drain and health care delivery in developing countries. Journal of Public Health in Africa, 1(1), e6. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5345397/
Mitra, A., Bang, J. T., & Wunnava, P. V. (2011). Financial liberalization and the brain drain: a panel data analysis. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1929653
Monteleone, S., & Torrisi, B. (2010). A Micro Data Analisys Of Italy’s Brain Drain. https://mpra.ub.uni-muenchen.de/20995/
Munir, S., Elahi, I., & Hussain Khan, I. (2018). Impact of Human Capital and Infrastructure Development on Economic Growth in Pakistan. European Online Journal of Natural and Social Sciences: Proceedings, 7(3), 127-140.
Pedersen, P. J., Pytlikova, M., & Smith, N. (2008). Selection and network effects - Migration flows into OECD countries 1990-2000. European Economic Review, 52(7), 1160-1186.
Pesaran, M. H., Shin, Y., & Smith, R. J. (1996). Testing for the Existence of a Long-run Relationship: Faculty of Economics. University of Cambridge.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
Sajjad, N. (2011a). Causes and solutions to intellectual brain drain in Pakistan. Dialogue, 6(1), 31-55.
Sajjad, N. (2011b). Causes and solutions to intellectual brain drain in Pakistan. Dialogue, 6(1), 1819-6462.
Solimano, A. (2002). Globalizing talent and human capital: implications for developing countries. Santiago: UN. https://elibrary.worldbank.org/doi/abs/10.1596/0-8213-5388-8#page=325
Stevenson, B. (2009). The Internet and Job Search Studies of Labor Market Intermediation. University of Chicago Press.
Straub, S. (2008). Infrastructure and development: A critical appraisal of the macro level literature: The World Bank. https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-4590
Urban, F. (2002). Small town, big website?: Cities and their representation on the Internet. Cities, 19(1), 49-59.
Vistnes, I., Nellemann, C., Jordhøy, P., & Strand, O. (2004). Effects of infrastructure on migration and range use of wild reindeer. The Journal of Wildlife Management, 68(1), 101-108.
Wegge, S. A. (1998). Chain migration and information networks: Evidence from nineteenth-century Hesse-Cassel. The Journal of Economic History, 58(4), 957-986.
How to Cite
Copyright (c) 2020 Shazia Kousar, Farhan Ahmed, S. Arfa Anam Bukhari
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Licensing & Copyright Policies
Articles in LASSIJ-IDEA are Open Access contents published under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) http://
The copyright policy of LASSIJ-IDEA is based on a non-exclusive publishing agreement, according to which the journal retains the right of first publication, but author(s) are free to subsequently publish their work. The copyright of all work rests with the author(s).
The users may use, reproduce, disseminate or display the article(s) provided that the author(s) are attributed as the original creators and that the reuse is restricted to non-commercial purposes, i.e., research or other educational use. Authors are encouraged to familiarise themselves with the various creative commons licenses.