Effects of Brain Drain on the Home Country Loss of tax revenue. Loss of potential future entrepreneurs . A shortage of important, skilled workers. The exodus may lead to loss of confidence in the economy, which will cause persons to desire to leave rather than stay.
What are the remedies of brain drain in Nepal?
- Ample employment opportunities.
- Smart earning.
- Strict implementation of law.
- Strengthening internal and political stability.
- Improved standard of education.
How does brain drain affect the process of Nepal?
High emigration has helped in reducing the poverty due to high remittance flow inside the country. The increase in remittances has reduced the poverty from 49 to 25% in Nepal [3]. ... The status of skilled brain drain has brought negative growth effects due to loss of productive resources from the country .
What are causes and consequences of brain drain?
Several common causes precipitate brain drain on the geographic level including political instability , poor quality of life, limited access to health care, and a shortage of economic opportunity. These factors prompt skilled and talented workers to leave source countries for places that offer better opportunities.
What are the consequences of brain drain to one’s country of origin?
Brain drain is a problem described as the process in which a country loses its most educated and talented workers to other countries through migration . ... Negative effects include loss of tax revenues by the home country, and a loss of key health and education service professionals.
Is brain drain a serious problem?
The brain drain problem refers to the situation where a country loses its best workers . ... The brain drain means that developing countries can struggle to develop because their best-skilled labour leaves the economy. Thus it becomes hard to break the cycle of losing the best workers.
What is the advantage and disadvantage of brain drain?
Moreover, the money migrants sent back are spent more in investments such as education, health and housing, rather than on food and other goods. Disadvantages Due to the influence of brain drain, the investment in higher education is lost as the highly educated person leaves India and becomes an asset to other country .
How we can control brain drain?
- Rural Development − Villages form the soul of proper and effective development in India. ...
- Tackling under-employment − The companies recruiting employees should take utmost care to resolve any form of underemployment in their organization.
What is an example of brain drain?
An example of brain drain is when almost all people who are highly educated but who live in a third-world country find jobs in the US and leave their home country .
What is the conclusion of brain drain?
6.8 Conclusion
Brain drain has always been the main agenda for policy makers as the loss of skilled personnel equates to slowdown in economic growth . Although there has been quite a number of researches on the phenomenon conducted by earlier researchers, but very few have attempted to conduct it quantitatively.
How does brain drain affect economy?
Brain drain can have a negative impact on the sending region, such as reduction of human capital, limited capacity to innovate, reduced economic growth , demographic shifts, and a higher cost of public goods.
Which country has the most brain drain?
Iran : In 2006, the IMF ranked Iran the highest in brain drain among 90 countries (both developed and less developed), with over 180,000 people leaving each year due to a poor job market and oppressive social conditions.
How does brain drain affect developing countries?
First and foremost, brain drain causes developing countries to lose the ability to progress . Talented people are born, raised, and educated in their country, and when it comes time to work and give back what they were provided, they leave and seek employment elsewhere.
Is brain drain beneficial or not?
The brain drain has long been viewed as detrimental to the growth potential of the home country and the welfare of those left behind. ... New research suggests that limited high-skilled emigration can be beneficial for growth and development, especially for a limited number of large, middle-income developing countries.
How does brain drain benefit the home country?
The brain drain can benefit a home country if it increases the proportion of college graduates in the population remaining . There are two conditions for such a benefit to obtain. ... Countries with low human capital and low emigration rates are likely to experience a net gain.
Why is a brain drain bad?
A brain drain may cause fiscal losses. Above a certain level, brain drain reduces the stock of human capital and induces occupational distortions . ... The brain drain has long been viewed as detrimental to the growth potential of the home country and the welfare of those left behind.
