1. Dr. Changhui Kang (Professor, Chung-ang University) KSP: An Examination of Brain Drain in Romania

2. Facts on Brain Drain from Romania ▶ Stock of Romanian Migrants 2

3. Facts on Brain Drain from Romania ▶ Stock of Romanian Migrants by Destination 3

4. Facts on Brain Drain from Romania ▶ Migration of Tertiary-Edu. People: 1990 and 2000 4

5. Facts on Brain Drain from Romania ▶ Migration of Tertiary-Edu. People by Gender, 2000 5

6. Facts on Brain Drain from Romania ▶ Medical Brain Drain, 2004 6

7. Economic Impacts of Brain Drain 7 ▶ Negative impacts by early studies in 1970-80’s - Reduction in the absolute size of skilled labor. - Occupational shortages in certain sectors and professions (e.g., teachers, engineers, physicians, nurses). - An increase in the technological gap b/w developing and developed countries. - A loss of domestic educational investments for those high-educated and high-skilled.

8. 8 Economic Impacts of Brain Drain ▶ Important assumptions of early studies - No uncertainty regarding future migration opportunities for the educated. - A complete disconnection between emigrants and their country of origin. - Neither return migration nor remittances

9. Statistics on Return Migration ▶ Return Relative to Gross Migration Flows (OECD), 1990-2000 9

10. Economic Impacts of Brain Drain 10 ▶ Potentially positive impacts by recent studies - Migration possibility encouraging human capital formation. - Temporary migration resulting in return migration (ex. the Hsinchu Science Park of Taiwan). - Remittances. - Diaspora and network effects (ex. India’s IT sector). - Business and scientific networks and technology diffusion.

11. Empirical Evidence on Ultimate Impacts 11 ▶ Beine, Docquier and Rapoport (2001, JDE; 2007, EJ) - BDR (2001) analyze a cross-section of 37 developing countries. BDR (2007) looks into a cross-section of 127 developing countries. - A net positive impact of skilled migration prospects on gross human capital levels. - Simulation: Countries combining relatively low levels of HC and low skilled emigration rates are likely to experience a net gain.

12. Empirical Evidence on Ultimate Impacts 12 ▶ Beine, Docquier and Rapoport (2001, JDE; 2007, EJ)

13. Empirical Evidence on Ultimate Impacts 13 ▶ The optimal rate of migration displays an inverse U-shaped relationship with the source-country level of development.

14. Policy Recommendations 14 ▶ Policies promoting positive impacts of BD - Promote return migration. - Ways to increase network effects.

15. Development Status Relative to the U.S. 15 ▶ Development Status Relative to the U.S. (unit: per capita GDP, ppp)

16. Korea’s Experiences 16 ▶ Korea’s Policies in 1970-80s: - Various restrictions on students studying abroad through 1970s. - But, in 1981 studying abroad was liberalized.

17. Korea’s Experiences 17 ▶ Number o Koreans Ph.D’s

18. Korea’s Experiences 18 ▶ Unique Features: - Various incentives were provided for those returning. Ex. The Korea Institute of Science and Technology (KIST) in 1966; The Korea Development Institute (KDI) in 1971. - Active involvement of U.S.-trained scholars in government policy makings.

19. Korea’s Experiences 19