The Effect of Protection of Intellectual Property Rights on Brain Drain from Selected Developing and Developed Countries

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Abstract

It is well known that brain drain has retarding effect on economic growth and development. One of the factors that have a significant effect on flow of brain drain from developing countries is recognition of intellectual property rights by state. Protection of intellectual property rights encourages, strengthens and promotesscientific, industrial, intellectual, and artistic activities and creativities, by reducing the incentives of intellectual elites to migrate. The purpose of this study is to investigate the effect of protection of intellectual property rights on brain drain from a set of selected developing and developed countries to the United States during the period of 1996-2009 using balanced panel data approach. Results of this study show a negative relationship between protection of intellectual property rights and brain drain in both the developed and developing countries. Variables of number of skilled immigrants in the host country and welfare gap between source and destination country (USA) has a positive relationship with the variable of brain drain. Also human capital variable has positive and significant relationship in developed countries and it has significant negative relationship in developing countries on brain drain. Also Control of corruption negatively affect brain drain.

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