Migration enclave and downward economic growth in Africa

Abstract

PurposeThe African region has experienced relatively lower economic growth and higher outflow of migration over the years. The purpose of this research paper, therefore, is to focus on the African region to investigate whether or not there is any link between the poor economic growth and rising outflow of migration.Design/methodology/approachEmpirical data spanning from 1990 to 2015 are collected from reliable sources for 41 countries belonging to the African region. Appropriate estimating methodology that controls for unobserved heterogeneity both across time and across countries, and endogeneity is employed.FindingsThe results revealed that the migration has adversely influenced the economic growth of the African region as a whole. The splitting of sample into male and female migration also reflected the fact that the unsatisfied economic growth of the African region could be explained by the ever rising migration level. Other determinants such as employment and growth of physical capital have helped the region in the growth journey. Human capital has not played a vital role in economic growth as it is adversely affected by migration. Further, the study found support for the positive impact of moderate inflation on economic growth. The obtained results are robust to alternative methodologies and hence would be beneficial for policymakers.Originality/valueThe present study provides for the first time comprehensive empirical evidence on the relationship between migration and economic growth by focusing on Africa. Therefore, this study would be of prime importance for policymakers.