many of the most highly educated workers to rich countries,
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can enjoy a higher standard of living. If human capital does have positive exter-
nalities,
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erwise would be. This problem offers policymakers a dilemma. On the one hand,
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the United States and other rich countries have the best systems of higher educa-
tion, and it would seem natural for poor countries to send their best students
abroad to earn higher degrees. On the other hand,
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time abroad may choose not to return home,
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poor nation's stock of human capital even further.
P R O P E R T Y R I G H T S A N D P O L I T I C A L S TA B I L I T Y
Another way in which policymakers can foster economic growth is by protecting
property rights and promoting political stability. As we first noted when we
542 PA R T N I N E THE REAL ECONOMY IN THE LONG RUN