What Are The Disadvantages Of Brain Drain? - Fixanswer

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.

What are the advantages and disadvantages 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.

Is brain drain a disadvantage for a developing country?

The impact of the brain drain on a source country’s welfare and development can be beneficial or harmful . The evidence suggests that there are many more losers than winners among developing countries.

Why brain drain should be stopped?

This loss is due to migration of such people due to lack of opportunities, conflicts etc. Brain Drain can be stopped by recognizing “genuine” talent rather than donations etc. There should be more trade and exchange of goods. ... If they can get such provisions in their own country, Brain-Drain can definitely be stopped.

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.

What are the reasons 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.

How brain drain can be stopped?

The payment needs to be structured and proper monetary incentives should be paid whenever necessary . The salaries are one of the most important economic factors that lead to brain-drain as the employee finds the payment attractive in the other countries.

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 do you reverse brain drain?

Reverse brain drain is a form of brain drain where human capital moves in reverse from a more developed country to a less developed country that is developing rapidly. These migrants may accumulate savings, also known as remittances, and develop skills overseas that can be used in their home country.

Why is brain drain bad for a country?

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. ... Migrants send money back to their country and they can return with improved skills and knowledge of business.

How does brain drain affect the nation?

The status of skilled brain drain has brought negative growth effects due to loss of productive resources from the country . Many graduates go abroad and learn new, high and improved technologies who can contribute directly for the economic development of their country.

How India can stop 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.

How does brain drain affect the economy?

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.

Is brain drain good for India?

Brain drain is both a boon and bane for country . It is not only in India but we find youth from several developing countries settling down in developed countries for leading better life. Since Indian population is high and Indian youth population is higher the number the issue appears to be exaggerated presently.

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.