Immigration, migrant international cash transfers, backward-externality of emigrant human capital, and total factor productivity in Africa

In the African context, the complex interplay between migration and economic outcomes is of particular importance, as many countries face unique challenges, such as limited resources, ongoing conflicts, and uneven development. This paper explores the impact of immigration, international migrant cash transfers, and emigration on total factor productivity in Africa, and its implications for public policy. We used the World Development Indicators, the Pen World Table from 2000 to 2020, and instrumental variable estimation in an endogenous growth model. The findings indicate that emigrant human capital and remittances have a negative impact on total factor productivity, whereas immigrant human capital positively affects it. These results highlight the importance of well-defined public migration policies that promote brain circulation, attract skilled immigrants, enhance domestic human capital development, and foster regional co-operation.

Denera Atanguegnima, Ekrame Boubtane & Koffi Sodokin (2023) "Immigration, migrant international cash transfers, backward-externality of emigrant human capital, and total factor productivity in Africa", Applied Economics