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The mobility of highly skilled human capital in Taiwan

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Abstract:

Most economists agree that a country's economic growth depends on human capital, physical capital, technology, and several other minor inputs. Human capital is the basic wealth of every country. Highly skilled workers are the most important component of human capital. Human capital can have a positive spillover effect on society. When talented young people leave their native country to work elsewhere, this brain drain inhibits the country's economic growth. Several factors contribute to brain drain. These can be classified roughly into three categories: economic, academic and personal. Economic factors play the most important role. From the early 1960s to the late 1980s, Taiwan suffered a brain drain when many people who had earned advanced degrees in western countries chose to leave Taiwan to work elsewhere. In this study's statistical analysis, I show that Taiwan's economy is based in past on an effective labour force and explain why Taiwan's economy has grown over the past 30 years. With the improved economy in the 1990s, young people are increasingly choosing to return to or remain in Taiwan to work and live. As Taiwan's economy improves, its highly skilled labour market becomes more competitive.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840500439051

Affiliations: Department of Business Administration, I-Shou University, Taiwan, R.O.C.

Publication date: May 1, 2007

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