Human capital acquisition and international migration in a model of educational market
This paper analyzes international high-skilled migration caused by financial frictions in educational market. I develop a model of learning in which acquisition of skill is only possible through personal interaction with a skilled individual; the income of the skilled is sensitive to financial constraints for the unskilled. Cross-country differences in such constraints have a multiplicative effect on the skill premium, causing outmigration of skilled individuals from a less developed country. I study welfare implications of such brain drain for the sending and receiving countries. Although it makes more difficult skill acquisition in the sending country, the unskilled may still be better off: increased cost of skill acquisition is offset by higher income once the skill has been acquired. For the receiving country, I identify a phenomenon of immiserizing immigration: a depletion of the stock of skill in the sending country due to brain drain hinders further production of skill, which may hurt the receiving country. Additionally, I find that increased openness of the sending country to migration and the resultant accelerated brain drain increase the incentives of the country government to reduce financial frictions.
The objective of this book is to develop the sustainable and lasting skills of translator's competence and to build up translation categorial strategy.
We analyze whether financial constraints of Brazilian firms are alleviated by ownership structure. More specifically, we study whether the presence of nonfinancial firms as shareholders of Brazilian firm mitigates financial constraints. We find that the presence of nonfinancial firms as significant shareholders reduces financial constraints, probably because such blockholders are able to reduce asymmetric information problems that are at the origin of financial constraints. This result indicates that the changes in the corporate ownership of the Brazilian firms, achieved within the country's structural changes, have been positive for firm investment and have contributed to the development of Brazil.
This volume develops a pragmatic approach to the engagement of highly skilled members of the diaspora for the benefit of their countries of origin. The book is based on empirical work in middle-income economies such as those in Argentina, Mexico, and Russia, as well as in high-income countries such as South Korea, Ireland, and the United Kingdom.
This study investigates the puzzle of zero-debt in emerging markets using a sample of firms from Eastern Europe during 2000-2013. The results of this paper are in line with the previous research of firms from developed markets. Firms that are financially constrained do not use debt as a result of credit rationing while financially unconstrained firms intentionally eschew debt to maintain financial flexibility and avoid underinvestment incentives. Furthermore, this study provides new insights into unconstrained firms’ performance during different economic situations. Firms that strategically avoid debt show better financial results than levered firms.
After the global financial crisis Russian macroeconomic dynamics changed dramatically: reduced access to external financing and the worsening economic outlook led to very weak investment dynamics. We test and confirm the hypothesis that one of the reasons is high debt burden of Russian companies - debt overhang. We propose a new indicator for debt overhang. Now the issue of financing investment in Russia is especially important: due to political reasons, the international capital markets are closed for most Russian companies. Special attention is given to the active participation of the government in the capital of companies. Companies associated with the state have formal and informal preferences, easier access to debt financing and may have soft budget constraints.
Chapter 8 focuses on the Russian diaspora and uses the online survey and face-to-face interviews as an empirical data source. The study concludes that Russian emigrants are less engaged in their home country development that their Argentinean or Mexican counterparts. But this gap is not as large as it seems given the much stronger engagement with the home country of the foreign institutions at which Russian emigrants work, and the high intensity of business visits in spite of distance and costs. Membership in international networks and receptiveness of the local businesses to change drive linkages more than other factors. Individual risk-taking is strongly associated with linkages. Counterintuitively, Russia displays the widest variety of diaspora success stories, more so than the more advanced South Korean economy.
We study the relationship between SMS (small medium size) firm ownership structure and obstacle to finance. The empirical research considers both the concentration of the company's ownership (controlling owner) and the presence of foreign participants in the equity capital. Our aim is to identify those determinants of financial markets (bond market development), legal institutions and firms characteristics in the transition economies of the post soviet countries that can be considered as barriers to attracting financial resources. This paper sheds light on large shareholders’ influence on obstacle to finance.