Does migration promote industrial development in Africa?

Economics Bulletin, 2017, vol. 37, issue 1, 228-247

Abstract: This paper examines the effect of international migration on industrial development in Africa. Econometric estimations are implemented on a panel of 45 African countries over the period 1980-2010 using the generalized method of moment estimators and the migration dataset constructed by BrÃ¼cker, Capuano and Marfouk in 2013. Our results suggest that on average, emigration affects industrial development in Africa positively and significantly during the period of interest. Both low-skilled and medium-skilled emigrants affect more industrial development. The results also reveal that international financial flows, business networks and scientific networks are the channels through which migration affects industrial development. African countries may benefit more from international migration by developing institutions that facilitate international financial flows, business networks and scientific networks.

Keywords: migration; emigration; industrial development; Africa (search for similar items in EconPapers)
JEL-codes: F2 L6 (search for similar items in EconPapers)
Date: 2017-01-26
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