EVALUATION OF BRAIN DRAIN IN TERMS OF COUNTRY RISK RATINGS: APPLICATIONS OF SHRINKAGE METHODS

Authors : Nilcan Mert

Pages : 424-436

View : 99 | Download : 98

Publication Date : 2023-10-18

Article Type : Research Paper

Abstract :Brain drain, defined as the one-way movement of educated and skilled human capital to developed countries, stands out as a major socio-economic problem for underdeveloped and developing countries. In this respect, brain drain has been examined from different perspectives in both theoretical and empirical literature. The aim of this study is to provide an empirical analysis of the brain drain in terms of economic, financial and political risk ratings of countries, which contain a large number of components. To this end, cross-sectional data from high-income and middle-income countries for 2021 were used. The impact of the country risk ratings on the brain drain has been examined by using the Shrinkage methods. The results suggest that economic risk is important for both groups of countries, but the impact coefficient is higher for developed countries. While the impact of political risk is more pronounced in the developed world, the impact of financial risk is more pronounced in the developing world. Based on the conclusion that the impact of country risk factors on brain drain is important for both groups of countries, not only developing countries but also developed countries should focus on policies aimed at retaining skilled labour.
Keywords : Beşeri sermaye, beyin göçü, regresyon, shrinkage