Economic Challenges of Brain Circulation: The Small Country Case

Abstract

The world is globalized, and barriers for international movement of highly skilled individuals are less noticeable. More and more qualified people tend to migrate with a purpose of studying and/or working abroad. Nowadays the concept of brain drain is used less often and is being replaced by brain circulation as a phenomenon possibly having a positive impact on the sending as well as the receiving countries. The article discusses the brain circulation concept, analyses the causes that induce the highly skilled individuals to migrate and the consequences to a donor country. The article consists of two main parts. In the first part of the article, an overview of the literature on brain circulation is given; the possible variables that may induce the decision to migrate and what could be done in order to benefit from the migration of the skilled people are discussed. The second part of the article analyses the factors which could prompt a person to move; the impact of the migration of the skilled individuals to a sending country is also discussed. The econometrical analysis of the reasons to move and the consequences on such migration is based on the example of Lithuania.

DOI: 10.5901/mjss.2013.v4n9p740