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Developing countries could be facing two linked trends that are potentially detrimental to their development prospects: outmigration of high-skilled professionals and the potential decline in remittances as migrants with higher skills may be less likely to remit or may remit less if they do. This paper examines this policy issue by empirically analyzing a cross-national dataset spanning 70 countries during the period 1985–2000, as well as a country-specific dataset for the Philippines. It finds little evidence that high-skilled migration is linked to lower remittances at the aggregate level. This finding coheres with more recent studies leveraging microlevel data.

In the Asia-Pacific region, India and China have spectacular role in promoting software industry. India is a leading destination for Information Technology (IT) software, while China is strong in the hardware segment. Unfortunately, the bilateral engagements between the two countries have been limited. This paper traces the immense opportunity available for strengthening the diasporic relations in the Indo-China software market. The paper identifies the important difference between the Chinese and Indian software with respect to the usage and the determinants of software development in both countries. Both diasporas are privileged to have their human resources that can play an important role through software outsourcing. The paper throws light on the SWOT analysis of both the economies in the area of the trends and patterns of software export and domestic market, factor inputs and the role of policy instruments, institutions and market forces needed for the promotion of the software industry. It also identifies the collaboration between companies from the point of view of the Indo-China economies that will be a win-win situation for competing and capturing the world market, if India’s strength in software could be meshed with China’s prowess in hardware.