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Fall 2014
ISSN 0890-913X
Volume 29, Number 3

Can Economic Freedom Cure Medical Brain Drain?

Pavel Yakovlev, Duquesne University
Tanner Steinkopf, Duquesne University
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TheJournalofPrivateEnterprise29(3),2014,97117CanEconomicFreedomCureMedicalBrainDrain?PavelYakovlevDuquesneUniversityTannerSteinkopfDuquesneUniversity______________________________________________________AbstractAsalossofhumancapital,braindrainisoftenviewedasathreattoeconomicdevelopment.Medicalbraindrainisperhapsespeciallydamagingbecauseitexertsbothimmediateandlong-termeffects.Thispaperestimatesthedeterminantsofbraindrainusingflowsofmedicalphysiciansfrom144countriesinto18mostlydevelopedcountriesduringthe19952004period.Controllingforvarioussocioeconomicandgeographicvariables,wefindthathighereconomicfreedom,alowershareofpublichealthexpenditures,andhigherhealthspendingpercapitatendtoattractmedicalprofessionals.Ourestimatesindicatethatmedicalbraindrainisresponsivetoannualchangesineconomicfreedom,healthspendingpercapita,andpopulationaging.______________________________________________________JELcodes:F22,J44,J61Keywords:economicdevelopment,humancapital,medicalbraindrain,physicianmigrationI.IntroductionBraindrain,alossofhumancapitalduetotheemigrationofskilledlabor,hasreceivedagreatdealofattentionfromscholarsandpolicymakersforaverygoodreason.Inadequatedomesticsupplyofskilledlaborcanimpedetheeconomicdevelopmentofacountry.Mostresearchsofarhasfocusedontheoveralllevelofbraindrain.However,BhargavaandDocquier(2007)claimthatstudyingtheoverallbraindrainhidessubstantialheterogeneityacrossindustrysectorsfromcountrytocountry,citingasexamplestheemigrationofnursesfromthePhilippinesandinformationtechnologyprofessionalsfromIndia.Mensah(2008)arguesthatextraattentionshouldbepaidtothelossofmedicalprofessionalsbecauseoftheir97
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