EVALUATING THE BHAGWATI TAX IN THE CONTEXT OF SOUTH–NORTH MIGRATION

Abstract

South-north migration has been increasingly rewarding due to higher returns on education in developed countries. The Bhagwati tax, proposed by Jagdish Bhagwati, aims to compensate developing countries for the loss of skilled workers. This evaluation examines the arguments for and against the Bhagwati tax, considering its potential to reduce inequality, promote development, and address brain drain. However, concerns regarding administrative complexity, restriction of freedom of movement, and potential negative impacts on trade and investment are also discussed. Ultimately, this evaluation highlights the need for careful consideration of the Bhagwati tax's potential benefits and drawbacks. Evaluating the proposed Bhagwati tax in the context of south-north migration reveals a complex interplay of arguments for and against its implementation. The study uses doctrinal/library-based methodology. Findings reveal that the tax could help developing countries recoup some of the investments they made in educating their citizens who later emigrate.