Tax and brain drain: Justification, policy options and prospect for large developing economies

International migration has continued to escalate over the last three decades, creating a risk of brain drain in developing countries. This paper reviews the extent to which the use of tax instruments to address brain drain can be justified in developing economies with large populations. Furthermore...

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Main Author: Bawono Kristiaji B.
Format: Article
Language:English
Published: University of Belgrade, Faculty of Law, Belgrade, Serbia 2019-01-01
Series:Anali Pravnog Fakulteta u Beogradu
Subjects:
Online Access:https://scindeks-clanci.ceon.rs/data/pdf/0003-2565/2019/0003-25651904017B.pdf
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author Bawono Kristiaji B.
author_facet Bawono Kristiaji B.
author_sort Bawono Kristiaji B.
collection DOAJ
description International migration has continued to escalate over the last three decades, creating a risk of brain drain in developing countries. This paper reviews the extent to which the use of tax instruments to address brain drain can be justified in developing economies with large populations. Furthermore, it explores and assesses tax policy options that may be undertaken to prevent the emigration of high-skilled individual, namely the Bhagwati tax proposal, exit tax, revenue sharing and tax incentives. Five things can be concluded from the assessment of several policy choices. First, there is no stand-alone tax policy that can optimally address brain drain, in the sense of reducing the number of high-skilled individuals who emigrate. Second, most policies put more focus on the element of fairness to compensate for the "loss" caused by the home country. Third, almost every available policy requires better coordination at the international level. Fourth, all policy options require closer collaboration with immigration agencies. Finally, each policy has the potential to produce unintended consequences.
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spelling doaj-art-486f8e7d30ba42268df60e2d322cd1a62025-08-20T02:17:38ZengUniversity of Belgrade, Faculty of Law, Belgrade, SerbiaAnali Pravnog Fakulteta u Beogradu0003-25652406-26932019-01-01674176710.5937/AnaliPFB1904017B0003-25651904017BTax and brain drain: Justification, policy options and prospect for large developing economiesBawono Kristiaji B.0DDTC, Research and Training Services, IndonesiaInternational migration has continued to escalate over the last three decades, creating a risk of brain drain in developing countries. This paper reviews the extent to which the use of tax instruments to address brain drain can be justified in developing economies with large populations. Furthermore, it explores and assesses tax policy options that may be undertaken to prevent the emigration of high-skilled individual, namely the Bhagwati tax proposal, exit tax, revenue sharing and tax incentives. Five things can be concluded from the assessment of several policy choices. First, there is no stand-alone tax policy that can optimally address brain drain, in the sense of reducing the number of high-skilled individuals who emigrate. Second, most policies put more focus on the element of fairness to compensate for the "loss" caused by the home country. Third, almost every available policy requires better coordination at the international level. Fourth, all policy options require closer collaboration with immigration agencies. Finally, each policy has the potential to produce unintended consequences.https://scindeks-clanci.ceon.rs/data/pdf/0003-2565/2019/0003-25651904017B.pdfbrain drainlarge developing economiesbhagwati taxexit taxtax incentive
spellingShingle Bawono Kristiaji B.
Tax and brain drain: Justification, policy options and prospect for large developing economies
Anali Pravnog Fakulteta u Beogradu
brain drain
large developing economies
bhagwati tax
exit tax
tax incentive
title Tax and brain drain: Justification, policy options and prospect for large developing economies
title_full Tax and brain drain: Justification, policy options and prospect for large developing economies
title_fullStr Tax and brain drain: Justification, policy options and prospect for large developing economies
title_full_unstemmed Tax and brain drain: Justification, policy options and prospect for large developing economies
title_short Tax and brain drain: Justification, policy options and prospect for large developing economies
title_sort tax and brain drain justification policy options and prospect for large developing economies
topic brain drain
large developing economies
bhagwati tax
exit tax
tax incentive
url https://scindeks-clanci.ceon.rs/data/pdf/0003-2565/2019/0003-25651904017B.pdf
work_keys_str_mv AT bawonokristiajib taxandbraindrainjustificationpolicyoptionsandprospectforlargedevelopingeconomies