Brain Drain and External Imbalances in Sub-Saharan Africa

dc.contributor.authorCoulibaly, Dramane
dc.contributor.authorGnimassoun, Blaise
dc.date.accessioned2021-10-04T07:51:51Z
dc.date.available2021-10-04T07:51:51Z
dc.date.issued2021-10-04
dc.description.abstractThe persistent nature of external deficits in sub-Saharan Africa (SSA) is a major concern. This paper examines the extent to which migration from SSA to OECD countries affects the dynamics of external balances in SSA countries. Based on panel regressions and gravity-based 2SLS estimation strategies on data from 46 SSA countries over the period 1990-2014, we establish that emigration — particularly of highly-skilled people — contributes to the persistence of external deficits in SSA countries. While emigration globally has a negative impact on the current account, only high-skilled emigration has a significant and robust impact. These findings are corroborated by the fact that highly-skilled individuals emigrate with their saving potential as suggested by t h e life-cycle theory. In addition, while remittances to home countries can help to compensate this negative effect of brain drain, our results show that highly-skilled emigrant’s contribution to remittances is less important compared to that of low-skilled emigrants. Therefore, policy makers in SSA countries should implement policies to attract more remittances, particularly from highly-skilled emigrants, in order to reduce their external imbalances or external financing needs.en_US
dc.identifier.urihttps://publication.aercafricalibrary.org/handle/123456789/2829
dc.publisherAfrican Economic Research Consortiumen_US
dc.relation.ispartofseriesResearch Paper 472;
dc.titleBrain Drain and External Imbalances in Sub-Saharan Africaen_US
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