The impact of brain drain on economic growth: A comparative analysis of Pre- and Post-outbreak of Covid-19 periods

This study explores the impact of brain drain on income growth and compares its effects between the pre- and post-outbreak of Covid-19 periods based on unbalanced panel data for 60 countries covering the period 1995–2022. Using fixed effects and system GMM regressions, the results reveal that brain drain negatively influenced income growth during the pre-Covid-19 period, while its relationship became positive after Covid-19. This implies that, after Covid-19, brain drain created brain circulation and positive effects on the source country. These results allow us to draw the following insights. First, the enhanced use of technology and the development of remote working blurred the importance of physical country borders. Second, after Covid-19, the role of nation-states became significant, which caused the return of populations to their original countries, and contributions to the origin countries may have increased through knowledge spillovers, remittances, and so forth. © 2025 Elsevier B.V., All rights reserved.