This paper examines how the spatial distribution of economic activity evolved within North Korea during a period of economic sanctions. Countries have used economic sanctions to isolate North Korea from the benefits of international trade and finance. China, however, has not imposed the sanctions, and consequentially has offset the trade restrictions imposed by other countries. I hypothesize three channels by which North Korea could have responded in this context: regional favoritism by the ruling elites, reallocation of commerce that reflects the trade diversion to China, and import substitution. Using nighttime lights from North Korea, I find that the capital city, trade hubs near China, and manufacturing cities become relatively brighter when sanctions increase. However, production shifts away from capital-intensive goods, potentially deterring industrial development. The results imply that despite the intention to target the ruling elites, sanctions may increase regional inequality at a cost to the already marginalized hinterlands.

The "Brexit" has been seen as a major blow that changes the future of Europe, at the time when nationalist and separatist movements seem most ascendant, and the EU seems to be the toxic subject for plebiscites, the European Union is expanding its role as a global actor. These referendums, and threats to withdraw, are spurring Member States to return to the roots of the European Project. From its historical foundation, that project prizes freedom from war on the continent, and prosperity through free movement of trade and social capital.

The development community has increased its focus on higher education over the past two decades, recognizing that education can contribute to building up a country’s capacity for participation in an increasingly knowledge-based world economy and accelerate economic growth. The value added by higher education to economies—job creation, innovation, enhanced entrepreneurship, and research, a core higher education activity—has been highlighted by an important body of literature. 

Yet experts remain concerned that investing in higher education in less-developed countries may lead to a “brain drain”--highly educated students and professionals permanently leaving their home countries. In the 2016 Kauffman report on international science, technology, engineering, and math (STEM) students in the United States, for instance, 48 percent among a randomly sampled survey of 2,322 foreign doctoral students in the United States wished to stay there after graduation, with only 12 percent wanting to leave and 40.5 percent being undecided. In fact, high percentages of foreign students in the United States with doctorates in science and engineering continue to stay in the United States, creating a brain drain problem for the sending countries. 

Because students tend to move from developing to developed countries to study, brain drain is more problematic for developing countries. In addition, given accelerated talent flows around the world and the increasing integration of less-developed countries into global value chains, the negative impact of brain drain could be further amplified. As demonstrated by the studies reviewed in this paper, the migration of high-skilled professionals from developing countries may indeed create brain drain for them, but at the same time can significantly enhance the social and economic development of their home countries, regardless of whether or not they decide to return home, thus complicating what used to be seen as a straightforward case of brain drain. 

From Brain Drain to Brain Circulation and Linkage examines how brain drain can contribute to development for the sending countries through brain circulation and linkage. It provides an overview of the conceptual framework to map out high-skilled labor flows, identifies empirical cases and policies in Asia that demonstrate high-skilled migrant professionals actually make significant contributions to their home countries (beyond monetary remittances), summarizes key social and economic enabling factors that are important in attracting and motivating migrant high-skilled professionals to return or engage with their home countries, and concludes with policy implications and suggestions for further research based on these findings.