Emigration of Skilled Labor under Risk Aversion: The Case of Medical Doctors from Middle Eastern and North African Economies

This is a contribution to the new economics of skilled labor emigration that focuses on the mobility of medical doctors from sending Middle East and North African countries. Economic models under risk neutrality and aversion are used. The findings show that the relative expected benefits and the emigration rate have major effects on the net relative human medical capital that remains in the source country. The effects of relative wages in the destination and sending countries besides the yield of education are likely to change the emigration patterns. Comparisons of theoretical and observed relative human capital per country averages are conducted and ensured the statistical validity of the model. The empirical results based on the available data by Docquier and Marfouk (2006 and 2008) and Bhargava, Docquier and Moullan (2010) allowed further use of the model to understand the current trends in the emigration of medical doctors. These trends confirm the magnitude of relative wages besides the level of education and the attitude toward risk as determinants of the emigration of skilled labor. The countries included in the study are all exhibiting brain gain under 1991-2004 emigration data but two distinct groups of countries are identified. Each country is encouraged to anticipate the likely effects of this emigration on the economy with the increase of health demand, the domestic wages and the increase in education capacity for medical doctors.Medical skilled emigration; wages; human capital, risks.

Introduction to Intellectual Property Rights, Software Protection & Development in the South Mediterranean Countries

This paper looks at the role of intellectual property rights in development in the context of South Mediterranean countries. A special focus is placed on software piracy data and analysis to assess the current losses implied by the practices of non compliance with IPRs. Descriptive and regression analyzes are used to show the links between piracy, economic losses and development. The results show how the strengthening of domestic institutions may not mean only applying “the law” and pursuing legally the non compliant. But it means the inclusion of the all players into the process of development. Further research and development besides optimal IPR protection appear to be necessary. The inclusion of the informal sector is then an important part of this enterprise. This requires policies of formalization besides mobilization of knowledge and intellectual property rights among the informal producers and traders.Intellectual property rights; software piracy; development; South Mediterranean countries.

Transforming Uncertainties into Risks and Poverty Alleviation: Lessons Learnt from the Successful Rescuing of Miners in Chile

Abstract: The objective of this paper is to suggest how the Chilean model used to rescue the 33 miners trapped underground, can be used to accelerate the development of new means for poverty alleviation mainly in developing economies. For that, the Chilean model is described and analyzed within the framework of uncertainty and risk with emphasis on the success of all operations, under time constraints. The attained results underline that this “point in time” process can be used to extract poor individuals and households and sustain their inclusion in normal economic and social activities. But, this is conditioned on the development of further participative research-actions, innovations and monitoring processes applied to multiple small scales, well localized and targeted poverty alleviation projectsUncertainty, risks, miners, Chili, poverty alleviation

Enterprise creation & anti-commons in developing economies: evidence from World Bank doing business data

Abstract: This paper looks at the tragedy of anti-commons and its implications on enterprise creation in developing economies. The most important features of the anti-commons are captured under a simplified theoretical economic model. The empirical part uses the data from “Doing Business” of the World Bank, to test for the high costs implied by scattered and fragmented decisions related to enterprise creation in developing economies. The attained results show the prevalence of anti-commons in relation to the development of new enterprises in developing economies relative to more developed countries. This points out how anti-commons can limit development and market economies through reducing business and enterprise creation and expansion. Awareness and development of appropriate remedies to anti-commons are among the means to ensure higher economic and social achievements.Anti-commons, Enterprise Creation, Licensing and Costs

Local Universities as Engines for Innovation and Regional Development in Southern Economies with Reference to MOROCCO

Abstract: The objective of this paper is to show that universities can be engines for local development in Southern economies. Previous contributions to the literature on this subject have already shown the positive effects of regional sources of tacit knowledge on local development. Using data on developed, developing and emerging countries, regression analysis is pursued with the available data. The attained results show that developing economies do have room for local development as this can be further provided by regional universities and schools. These potential gains have been expressed to be higher for developing and emerging countries. These results imply that developing and emerging countries can enhance their local and overall development through the promotion of local universities and schools but these sources of skills and knowledge need to be tied with the local needs of the population as in developed countries. The case of Morocco illustrates the potential and positive effects of regional universities on local development. The transmission channel includes encouragement of skills, access to patents and intellectual property rights protection besides enterprise creation and implementation. These trends are likely to be accelerated within the regionalization process and the role of regional knowledge centers.universities-innovations-local development-Southern countries-Morocco

Internal Mobility and Likelihood of Skill Losses in Localities of Emigration: Theory and Preliminary Empirical Application to Some Developing Economies

An economic model is introduced to discuss the impacts of rural migration on skills in source and destination localities and regions. Two versions of the model are used without and with risks. In this context, the model considers that rural migration is determined by the demand for education and urban rural wage differences. The optimal decision rules attained are tested against available aggregate data for series of developing countries. The preliminary empirical results show the existence of country variations of rural emigration with varied impacts on education with likely losses in localities of emigration. Economic and social policies are to account for these impacts mainly when emphasis is placed on regional and local development programs.Rural migration; bias; education; skilled labor; local development

Emigration of Highly Skilled Labor: Determinants & Impacts

This is an additional contribution to the large body of literature developed in the area of economics of skilled labor migration. It focuses on two major objectives that are the determinants of the migration and its likely impacts on developing economies. Within the framework of the new economics of skilled labor migration, this research has attempted to test empirically the relevance of some components of the most recent new economic models of skilled labor migration. Using available data from international organizations (World Bank, OECD, UNESCO…) and others, in both regressions analyzes and economic simulations, hypotheses have been tested and directions of empirical results identified for larger policy discussions. The theoretical models that have been given priority in these empirical investigations are mainly those of Beine & al, Stark (2005) & al, N. Duc Thanh (2004) and M. Schiff (2005). A major focus has been placed on the models suggested by Duc Thanh (2004) where useful specifications of the functional forms were made. This selected framework uses the similarities that have been observed between this model and that of Stark and Schiff. The empirical results that have been obtained confirm the role of relative wages, the availability of better opportunities such as jobs, the importance of the living conditions as well as the existence of more attractive working conditions in destination countries relative to source economies. Concerning the estimation of the impacts of skilled labor migrations for both developed and developing economies, the specifications have followed Beine, Stark and Duc Thanh models with special emphasis placed on this latter. Given the dynamic nature of Beine’s model and with the limits on the available time series, significant empirical results are obtained and tests of Beine’s propositions achieved. The regressions results using the subcomponent of the knowledge economic index have shown significantly the effects of both domestic education and the attractiveness of foreign relative wages as major determinants that support the explanation of the level of knowledge added by the tertiary sector in each economy. In the sense of these estimations, it appears clearly that any economy is under two major opposite effects. On one hand, there is the relative share of investment in education that affects positively the human capital formation in any country but with higher impact in developing economies. On the other hand, there is the magnitude of the relative wages that negatively affect the performance of developing economies as measured by the subcomponent of the knowledge economic index. These results have been first confirmed through regression analysis. These preliminary findings suggest that local, national, regional and international economic policies consider the new theoretical and empirical trends shown so far by these results.Key words: Sklled labor; brain drain; development

How zero price affects demand?: experimental evidence from the Moroccan telecommunication market

To select one of several products (or to buy nothing) is a daily decision. Its foundations vary from one person to another and are based on perceptions, preferences, and other criteria. The standard theoretical perspective conveys that people choose options with the highest net benefit. However, the zero price model, proposed by Shampanier, Mazar, and Ariely (SMA) (2007), suggests that decisions about free (zero price) products do not simply subtract costs from benefits but instead perceive other gains and costs associated with free products. This paper tests this second alternative by contrasting demand for telecommunication products in Morocco, mainly SMS and calls. The price difference is maintained between the cheaper and expensive options such that the cheaper product is priced at either a low positive price (cost condition) or zero price (free condition). The results suggest that more participants choose the cheaper option, whereas fewer participants choose the more expensive one. People act as if zero pricing is a special price, as suggested by the zero price model. The paper tests also the affect as an explanation to the zero price effect. The result suggests that the price effect cannot be fully attributed to this dimension.free; zero; price; affect; telecommunications; Morocco.

Digital Rights Management, Intellectual Property Rights Protection and Economic development: The case of digital piracy in the South Mediterranean countries

Abstract: The potential benefits that could be gained from information technologies in South Mediterranean economies are constrained by both DRM and institutional protection related to Intellectual Property Rights. But, pervasive piracy can appear to be a major obstacle to access these benefits. This paper through a simplified theoretical decision model attempts to suggest foundations to reveal levels of protection rates. This is followed by an empirical assessment of the likely effects of different macroeconomic variables in the context of selected South Mediterranean countries using software piracy data and the protection rates derived from the above model. This is intended to reveal the most important variables that drive software protection. The results attained show how protection should be strengthened through further investments in knowledge and through openness to foreign direct investments that lead to superior economic outcomes.Key words: DRM; Information and communication technologies; piracy; South Mediterranean economies.

New Health Technologies and Health Workforce in Developing Economies

Abstract This paper focuses on the importance of human health resources in relation to current and future trends in health. It is based on syntheses of reports, publications and economic development processes related to the increasing needs for skilled human resources in health systems that are under both high demand but also under the requirements of new health technologies. A special emphasis is placed on developing countries where series of constraints could lead to limit the provision of access to health care under shortage of skilled labor. The human resources related risks at both levels of developed and developing economies are also discussed even though emergent and developed countries have generated new instruments to limit the negative effects of these constraints. Finally, if the expansion of access to new health technologies could be achieved within the world global health system framework, requirements of increasingly needed human resources and skills are shown