The third world brain drain problem contains elements of economic, social and political complexities. The neo-classical economic theory may, therefore, be deficient in explaining brain drain. A number of studies have focused on the effects of brain drain rather than the causes. Moreover, data availability was a problem in previous studies. This paper is concerned with a dis aggregated analysis of the determinants of immigration of engineers and scientists to the U.S. from the third world countries. Attempt has been made to explain the third world professional immigration to the U.S. with a variant of Arrow-Capron model (1959). This analysis supports the view that labor market shortages explain the immigration of engineers and scientists to the U.S. An immigrant income taxation proposal may be effective in compensating the third world countries and in stopping professional immigration.
In this paper we have identified the sources of growth and its beneficiaries in Pakistan’s large scale manufacturing sector using a simultaneous equation model. The use of such a model was necessitated since the Sims Test revealed endogeneity in the variables. We find the single equation estimates biased when compared with the ones obtained from the use of the simultaneous model. Using the latter estimates we find the contribution of capital much less, and the contribution of labor almost double as compared with the single equation estimates. The contribution of technological change declines just a little. The single equation estimates revealed constant returns to scale, while the simultaneous model indicated the presence of increasing returns. We find that every one per cent increase in productivity leads to a 0.6 per cent increase in wages and a 0.6 per cent decline in prices.
This paper surveys major issues in the financial repression literature. A theoretical discussion of sources of imperfections in capital market and financial repression is presented. Important conclusions from the survey are presented for LDC policy makers in terms of impact on investment and savings variables. Based upon the former, a framework is developed in which a significant link between financially repressive policies and financial 'looting' is highlighted. A heuristic discussion of conditions under which financial '˜looting' takes place is provided. The end result, and cost to the economy. is 'paper' investment and concentration of economic power.
Kakwani (1980) has suggested the use of Gini Coefficient to estimate income elasticities. This paper shows that co-efficient of variation , another measure of inequality. can also be used efficiently to find income elasticities. Derivation of both the estimators are based on the use of Extended Linear Expenditure System.
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