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Brain Drain Or Gain: Migration of Knowledge Workers from India to the United States Anjali Sahay Old Dominion University

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Brain Drain Or Gain: Migration of Knowledge Workers from India to the United States Anjali Sahay Old Dominion University Old Dominion University ODU Digital Commons Graduate Program in International Studies Theses & Graduate Program in International Studies Dissertations Spring 2006 Brain Drain or Gain: Migration of Knowledge Workers From India to the United States Anjali Sahay Old Dominion University Follow this and additional works at: https://digitalcommons.odu.edu/gpis_etds Part of the International Relations Commons, and the Migration Studies Commons Recommended Citation Sahay, Anjali. "Brain Drain or Gain: Migration of Knowledge Workers From India to the United States" (2006). Doctor of Philosophy (PhD), dissertation, International Studies, Old Dominion University, DOI: 10.25777/2rb1-ws63 https://digitalcommons.odu.edu/gpis_etds/91 This Dissertation is brought to you for free and open access by the Graduate Program in International Studies at ODU Digital Commons. It has been accepted for inclusion in Graduate Program in International Studies Theses & Dissertations by an authorized administrator of ODU Digital Commons. For more information, please contact [email protected]. BRAIN DRAIN OR GAIN: MIGRATION OF KNOWLEDGE WORKERS FROM INDIA TO THE UNITED STATES by Anjali Sahay BA. August 1997, Delhi University, India M.A. June 1999, Delhi University, India A Dissertation Submitted to the Faculty of Old Dominion University in Partial Fulfillment of the Requirement for the Degree of DOCTOR OF PHILOSOPHY INTERNATIONAL STUDIES OLD DOMINION UNIVERSITY May 2006 Approved by: iushi?Yang (Chair) Chandra’ "a^Member) Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ABSTRACT BRAIN DRAIN OR GAIN: MIGRATION OF KNOWLEDGE WORKERS FROM INDIA TO THE UNITED STATES Anjali Sahay Old Dominion University, 2006 Director: Dr. Xiushi Yang This dissertation looks at the topic of brain drain from a new lens. It departs from the traditional literature to include discussion on brain gain and brain circulation using Indian migration to the United States as case study. While it cannot be denied that host countries have policies that encourage or provide the necessary conditions for brain drain to take place, it must be taken into account that many source countries now benefit from out-migration of their workers and students. These are usually measured as remittances, investments and savings associated with return, and network approaches that, with a connectionist approach, link expatriates with their country of origin. In addition, Diaspora members, through successes and visibility in host societies, further influence economic and political benefits for their home countries. This type of brain gain can be considered as element of soft power for the source country in the long term. Three hypotheses are tested in this dissertation to argue the points above. Using India as source country, the first hypothesis positively tested that benefits outweigh the cost of out­ migration, with India as the highest remittance receiving country in the world with multifaceted connections in the Silicon Valley. The second hypothesis accessed the leverage of the Indo-American community as strong in terms of wealth and education. However, the possibility of this changing the asymmetrical interdependent relationship between India and the U.S. in favor of India remains at best a possibility in the long term. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. The third hypothesis also positively tested that a more active role played by the state in the sending country determines the level of return and non-return benefits. The dissertation also notes that while these hypotheses may be true for a country like India, where many other factors play a role, it may not necessarily affect other less developing countries in a similar vein. Additionally, third generation Indo-Americans may not necessarily retain the same ties as were seen by the first and second generations. Thus direct benefits in the long term may differ in result. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. To my parents, Rekha Sahay and Late Janardan Sahay. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACKNOWLEDGMENTS This dissertation could not have been completed without the invaluable help of a large number of individuals to whom I am gratefully indebted. Dr. Xiushi Yang read countless drafts and revisions, and provided guidance and help at every stage, even when he was on research leave out of the country. He shaped my thoughts on brain drain in myriad ways and constantly encouraged me to be a focused researcher, exploring current theories in international migration. He led by example, and for this I am eternally grateful. Similarly, Dr. Chandra DeSilva left a lasting impression on my intellectual and personal development. His standard of excellence was second to none, and he continually pushed me to be better than what I was or could be. Without his mentoring and guidance, early on, such an undertaking would not have been completed. Dr. Leon Bouvier, through his observation and experience in the subject, worked with me extensively, and challenged every aspect of the methodology. He not only advised on the topic in the dissertation, but also on how to approach the subject, with its nuances in future. I would also like to thank Professor Maria Fomella-Oehninger for her constant mentoring and training as a political scientist. With her support, I learnt to write and talk to the widest audiences possible. I would also like to thank Dr. Jie Chen, Dr. Glen Sussman, and Dr. John Kuehl, chairs of the departments of International Studies, Political Science, and History, respectfully, who made it possible for me to be gainfully employed while completing my dissertation. Finally, I would like to thank all my colleagues and friends, who provided me their support and put up with me in this phase of my life. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. v i TABLE OF CONTENTS Chapter Page I. INTRODUCTION........................................................................................... 1 RESEARCH QUESTIONS AND HYPOTHESES........................12 COMMON ASSUMPTIONS WITH BRAIN DRAIN...................16 OVERVIEW OF THE DISSERTATION....................................... 20 II. ALTERNATE THEORETICAL APPROACHES TO BRAIN DRAIN ...23 INTRODUCTION............................................................................ 23 BRAIN DRAIN: CONCEPTS AND LITERATURE REVIEW...25 BRAIN GAIN: REMITTANCES, RETURN, AND DIASPORA NETWORKS.....................................................................................36 BRAIN DRAIN AND BRAIN GAIN: ROLE OF THE STATE ..54 BRAIN DRAIN AND (UNDER) DEVELOPMENT.................... 60 BRAIN GAIN AND SOFT POWER: SOME GAPS IN THE LITERATURE...................................................................................69 CONCLUSION..................................................................................76 III. INDO-US RELATIONS: POLITICAL, ECONOMIC AND MIGRATION LINKAGES........................................................................... 78 INTRODUCTION............................................................................ 78 COLD WAR CALCULATION: POLITICAL & ECONOMIC....80 POST COLD WAR AND CHANGING RELATIONS................ 89 MIGRATION FLOWS: INDIA AND THE UNITED STATES...99 INDIA AS THE SENDING COUNTRY......................................100 UNITED STATES AS RECEIVING COUNTRY.......................I l l CONCLUSION................................................................................118 IV. UNITED STATES: IMMIGRATION LAWS AND FUTURE OF BRAIN DRAIN........................................................................................... 121 INTRODUCTION.......................................................................... 121 THE IMMIGRATION DEBATE.................................................. 123 HISTORY OF IMMIGRATION IN THE UNITED STATES....129 SELECTIVE RECRUITMENT: SKILLED WORKERS AND STUDENTS.....................................................................................137 TEMPORARY ADMISSIONS (HI - B) CATEGORY 143 TEMPORARY ADMISSIONS (FI) STUDENT CATEGORY .152 THE FUTURE OF IMMIGRATION LAWS AND BRAIN DRAIN............................................................................................. 158 CONCLUSION................................................................................159 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Chapter Page V. INDIAN DIASPORA AND BRAIN GAIN: REMITTANCES, RETURN AND NETWORK APPROACHES..........................................162 INTRODUCTION.......................................................................... 162 BRAIN DRAIN AND COST..........................................................164 REMITTANCES..............................................................................170 INVESTMENTS AND BANK DEPOSITS................................. 177 RETURN MIGRATION................................................................ 186 DIASPORA NETWORKS AND BRAIN CIRCULATION 190 CONCLUSION............................................................................... 203 VI. INDIAN DIASPORA IN THE UNITED STATES: SOFT POWER AND BRAIN GAIN....................................................................................204 INTRODUCTION.........................................................................
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