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Impact of migration on economic growth and human development

Impact of migration on economic growth and human development PurposeThe purpose of this paper is to examine the impact of migration on economic growth and human development in selected Sub-Saharan African (SSA) countries.Design/methodology/approachThe estimations were carried out in a panel of 19 selected SSA countries over the period 1990-2013, using the two-stage least squares estimation techniques. Two measures of migration, namely stock of international migrants and the ratio of personal remittances received to personal remittances paid were used in the study to carry out this investigation.FindingsThe results conform to the findings of existing literature, namely that social expenditure, domestic investment, financial inclusion, income inequality, income and human poverty are significant determinants of either human development or per capita GDP in Sub-Saharan Africa. The distinctive feature of the study is the significant but negative role played by migration in explaining human development and economic growth in the region. The results from the panel estimations reveal that an increase in the measures of migration deteriorates the level of human development and growth of the region.Research limitations/implicationsThe major limitation of this study is the unavailability of quality data on migration flows. Therefore, it would be imperative to reinvestigate the specifications adopted in this study in follow-up studies.Practical implicationsThe study includes implications for policy makers, especially in SSA countries, that the pattern and flow of migration does not circulate within the region and has tended to drain out human capital to other regions of the world. In the same event, the stock of migrants residing in the region may be low-skilled migrants that do not contribute directly to the level of human development.Originality/valueTo assess the impact of migration on economic growth and development such as the SSA region, it is imperative to follow the growth-based, capacity-based and asset-based approaches to development. This study has made this distinction. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Social Economics Emerald Publishing

Impact of migration on economic growth and human development

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0306-8293
DOI
10.1108/IJSE-07-2015-0190
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to examine the impact of migration on economic growth and human development in selected Sub-Saharan African (SSA) countries.Design/methodology/approachThe estimations were carried out in a panel of 19 selected SSA countries over the period 1990-2013, using the two-stage least squares estimation techniques. Two measures of migration, namely stock of international migrants and the ratio of personal remittances received to personal remittances paid were used in the study to carry out this investigation.FindingsThe results conform to the findings of existing literature, namely that social expenditure, domestic investment, financial inclusion, income inequality, income and human poverty are significant determinants of either human development or per capita GDP in Sub-Saharan Africa. The distinctive feature of the study is the significant but negative role played by migration in explaining human development and economic growth in the region. The results from the panel estimations reveal that an increase in the measures of migration deteriorates the level of human development and growth of the region.Research limitations/implicationsThe major limitation of this study is the unavailability of quality data on migration flows. Therefore, it would be imperative to reinvestigate the specifications adopted in this study in follow-up studies.Practical implicationsThe study includes implications for policy makers, especially in SSA countries, that the pattern and flow of migration does not circulate within the region and has tended to drain out human capital to other regions of the world. In the same event, the stock of migrants residing in the region may be low-skilled migrants that do not contribute directly to the level of human development.Originality/valueTo assess the impact of migration on economic growth and development such as the SSA region, it is imperative to follow the growth-based, capacity-based and asset-based approaches to development. This study has made this distinction.

Journal

International Journal of Social EconomicsEmerald Publishing

Published: May 8, 2017

References