The Impact of Brain Drain on Economic Growth (A case study of Iran)

We focus on the impact of brain drain on economic growth of Iran in during 1338- 1385. We use the U. S statistical yearbooks of the immigration. Theorical and empirical literature show that human capital has an important effect on economic growth, and the brain drain as a shortcoming effect on human capital formation, has inverse effect on economic growth. The empirical results indicate that brain drain has non-linear effect on economic growth of Iran (multiplication of dummy variable of Islamic Revolution and brain drain, and this effect is negative and highly significant. Labor force and moreover domestic and foreign R&D capital stocks and human capital that are important means in knowledge economy, have positive and direct effect in production function of Iran, except the foreign R&D capital stock that is not significant in production function of Iran, others are significant.