Nonlinear Effects of Monetary Policy on Brain Drain in Developing Countries

The issue of brain drain and migration of elites is not a new issue, but a phenomenon that has been seen in developing countries for a long time in different and significant ways. Analyzing the effects of monetary policies on brain drain can analyze this phenomenon more effectively. Because economic variables in the field of monetary policy play a significant role in this field. In order to prevent the migration of elites, attracting private funds and directing the volume of money and liquidity towards production, it requires the formulation and implementation of macro-support policies and carrying out structural reforms. Due to the gap in previous studies that have investigated the effects of multiple factors on elite migration, the purpose of this study is to investigate the nonlinear effects of monetary policies on brain drain in developing countries during 2002-2018. For this purpose, the method of generalized moments has been used. Based on the findings of the study and the results of the model estimation, each of the variables in the model has a different effect on the brain drain, some of which decrease and some of which increase the migration of elites. The growth of the money supply has had a non-linear effect on the brain drain. The growth of the amount of money at a level lower than the set threshold has left a negative impact on brain drain, but its crossing over the threshold level of 30/09 has intensified the brain drain. In fact, the first break of brain drain, the second power of money volume growth and interest rate have a positive effect, and crediting the monetary sector to the private sector and money volume growth below the desired threshold has had a negative effect on brain drain and the migration of elites in developing countries.