Brain drain in Bhutan: its impacts and countermeasures

Abstract This study examines the potential effects of skilled labor emigration on Bhutan’s economy using an extended computable general equilibrium (CGE) model. Numerical simulation analysis is undertaken to examine the impacts of an ongoing increase in skilled emigrants on the economy and welfare of Bhutan. The simulation results paint a somewhat pessimistic picture, showing that a rise in foreign wages would lead to a significant outflow of skilled labor, causing a substantial supply shortage in the domestic skilled labor market and a decline in all sectors - particularly in the manufacturing, services, and public sectors. Moreover, the increased inflow of remittances would exacerbate the negative impacts through the Dutch disease. The overall outcome is a decline in GDP by 0.2% from the base. To counter this adverse economic impact, this study proposes policy interventions by improving total factor productivity (TFP) or labor productivity in the domestic industries. Specifically, it is unveiled that reform initiatives that can enhance productivity gains beyond 0.3% in TFP or 0.4% in labor productivity across the sectors would contribute positively to GDP growth and curtail the brain drain from the country.

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Publication Details

Journal
Comparative Migration Studies
Published
2025-04-07
DOI
https://doi.org/10.1186/s40878-025-00439-x
Citations
1
Primary Topic
Global Health and Epidemiology
Type
article
Field-Weighted Citation Impact
2.94

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article

Brain drain in Bhutan: its impacts and countermeasures

Nobuhiro Hosoe, Rinchen Dorji
1 citations
Comparative Migration Studies
Global Health and Epidemiology
2.94
article

Brain drain in Bhutan: its impacts and countermeasures

Nobuhiro Hosoe, Rinchen Dorji
article en
1 citations

Abstract

Abstract This study examines the potential effects of skilled labor emigration on Bhutan’s economy using an extended computable general equilibrium (CGE) model. Numerical simulation analysis is undertaken to examine the impacts of an ongoing increase in skilled emigrants on the economy and welfare of Bhutan. The simulation results paint a somewhat pessimistic picture, showing that a rise in foreign wages would lead to a significant outflow of skilled labor, causing a substantial supply shortage in the domestic skilled labor market and a decline in all sectors - particularly in the manufacturing, services, and public sectors. Moreover, the increased inflow of remittances would exacerbate the negative impacts through the Dutch disease. The overall outcome is a decline in GDP by 0.2% from the base. To counter this adverse economic impact, this study proposes policy interventions by improving total factor productivity (TFP) or labor productivity in the domestic industries. Specifically, it is unveiled that reform initiatives that can enhance productivity gains beyond 0.3% in TFP or 0.4% in labor productivity across the sectors would contribute positively to GDP growth and curtail the brain drain from the country.

Comparative Migration StudiesVol. 13(1)
National Graduate Institute for Policy Studies (JP), Royal University of Bhutan (BT)
Japan Society for the Promotion of Science, Division of Human Resource Development
Openalex Percentile: Top 10%
Global Health and Epidemiology
2.94
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