Advanced Macro & Growth · intermediate
What moves on the Endogenous Growth (AK Model) diagram
Losing skilled people lowers A, rotating the saving line down and permanently narrowing the growth gap: the mirror image of an innovation boom.
Growth runs on the productivity of ideas and skills: the A in AK.
Skilled workers and researchers emigrate en masse.
The saving line rotates down toward break-even.
The growth gap narrows permanently, and if A falls far enough the economy can stagnate outright. Human capital flight is a growth-rate problem, not a one-off loss.
Examiners ask this as: brain drain, emigration of skilled workers, talent exodus, researchers leave, human capital flight.
Other scenarios on Endogenous Growth (AK Model)