Diaspora Remittances and Human Capital Development in Nigeria
Keywords:
Brain-Drain, Brain-Gain, Diaspora, Human Capital, RemittancesAbstract
A research examined Diaspora Remittances, the acclaimed developmental financial means and the development of human resources in Nigeria. The data collected for this study was sourced from World Bank World Development Indicator data base and the Global Economy.com. The data that spanned through 1981 to 2021 were analyzed using ordinary least square estimation technique. Various robustness checks were also performed to ascertain the validity of the included variables. It was revealed that diaspora remittances exact a positive and significant effect on the quality of the residual domestic human capital. It was therefore recommended, among others, that fund transfer be made easier and cheaper to enhance larger inflows especially through formal channels and that government should put in place social infrastructural facilities, such as improved social amenities and adequate security measures, and many more, that will encourage migrants to return home after some years of stay to allow for more improvement in human capital through brain-gain.
References
Adeagbo, M. O. and Adeleke, G. O. (2021). Political Corruption and Sustainable Development in Nigeria: Implication on Political Education and Society. Journal of Research in Education and Society, 12(1), 32-47
Adeagbo, M. O. (2015). Corruption the bane of national development in Nigeria. International Journal of Economic Development and Research, 6 (2).
Bhagwati, J. N., & Hamada, K. (1974). The brain drain, international integration of market for professionals and unemployment. Journal of Development Economics, 1, 19 – 42
Chami, R., Fullenkamp, C., & Jahjah, S. (2003). Are immigrant remittance flows a source of capital for development? IMF Working Paper
Docquier, F., Lodigiani, E., Rapoport, H., & Schiff, M. (2016). Emigration and democracy. Journal of Development Economics, 120, 209 – 223
Docquier, F, & Rapoport, H. (2012). Globalization, brain drain and development. Journal of Economic Literature, 50, 681 – 730
Fonta, M. W., Ayuk, E. T., Chukwu, J. O., Onyukwu, O. E., Agu, C. C., & Umenwa, I. O. (2015). Dynamics of remittance utilization by Nigerian households. Progressive in Development Studies, 15(4), 343 – 357
Gelb, S. O., Kalantaryan, S. J., McMahon, S. J., & Perez-Fernanz, M. J. (2021). Diaspora finance for development: From remittances to investment. Luxemourg: Office of the European Union, European Commission Joint Research Centre Report. Retrieved from https://doi.org/10.2760/034446
Glytsos, N. P. (2005). A model of remittance determination applied to the Middle East and North Africa countries. Working Paper, No 73, Centre of Planning and Economic Research, Athens
GMDP (2020). Remittances. Retrieved from https://migrationdataportal.org/themes/remittances
Guiliano, P, & Ruiz-Arranz, M. (2006). Remittances, financial development and growth. Journal of Development Economic, 90, 144 – 152
Haque, N. U., & Kim, S-J. (1995). “Human capital flight”. Impact of migration on income and growth. IMF Staff Papers, 577 - 607
Kerr, W. R. (2008). Ethnic scientific communities and international technology diffusion. Review of Economics and Statistics, 90, 519 – 537
Lotto, M. A., & Alao, A. A. (2016). Remittances and the growth of the Nigerian economy. Ethiopian Journal of Business and Economics, 6(2), 209 -232
Lucas, R. M. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3 – 42
Meyer, J. B. (2001). Network approach versus brain drain: Lessons from the diaspora. International Migration, 39, 91 – 110
Miyagiwa, K. (1991). Scale economies in education and the brain drain problem. International Economic Review, 32, 743 -759
Modestus, A. (2023). Nigerian Diaspora Remittances to hit $26b in 2025. Business Day, August 2, 2023
Mountford, A. (1997). Can a brain drain be good for growth in the source economy? Journal of Development Economics, 53, 287 – 303
Nwaka, S. (2021). Brain Drain, the African Diaspora and innovation in Africa: Sustaining a post COVID-19 research for development. Singapore: Palgrave Macmillan. Retrieved from https://doi.org/10.1007/978-981-16-0155-2_10
OECD (2015). Connecting with Emigrants: A Global Profile of Diaspora 2015, OECD Publishing, Paris
Osinbajo, Y. (2021). 70 percent of diaspora remittances to Nigeria used for family support. Vanguard, 24th July, 2021
Rapoport, H. (2010). Le “brain drain” et son incidence sur les pays en developpment. Regards Croises sur L’economie, 8, 100 – 124
Stark, O., Helmenstein, C., & Prskawetz, A. (1997). A brain drain with a brain gain. Economics Letter, 52, 227 – 234
Vidal, J. P. (1998). The effect of emigration on human capital formation. Journal of Population Economics, 11, 589 – 600
World Bank (2020). Phase II: COVID-19 crisis through a migration lens. Migration and development brief 33 World Bank Group
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 International Journal of Economic Development Research and Investment (IJEDRI)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
