Brain Drain and Economic Growth: An ARDL Analysis

Abstract

This study is focus on empirical analysis of highly skilled labor force emigration from Pakistan to across world. We investigate that pull and push factors are the main cause of highly skilled migration across countries. Applying ARDL analysis, we find out the short-run and long-run effects of brain-drain on economy of Pakistan by using time series data over the period 2000-2022. The empirical results support the gravity model and demand -supply theories of migration. On the basis of our finding’s migration of brain-drain influence negatively economic growth but remittances that receive Pakistan from overseas nationals contributes positively to economic growth while remaining control variable have same signs explained by theories. We can recap the results that developing countries like Pakistan, focus on planned brain-export rather unplanned brain-drain.