International migration and economic growth: a source country perspective

This study analyzes the impact of international migration on economic growth of a source country in a stochastic setting. The model accounts for endogenous fertility decisions and distinguishes between public and private schooling systems. We find that economic growth crucially depends on the international migration since the migration possibility will affect fertility decisions and school expenditures. Relaxation of restrictions on the emigration of high-skilled workers will damage the economic growth of a source country in the long run, although a ‘brain gain’ may happen in the short run. Furthermore, the growth rate of a source country under a private education regime will be more sensitive to the probability of migration than a country under a public education regime.