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Emigration and External Imbalances in Sub-Saharan Africa: Do Migrants' Skills Matter?

Author

Listed:
  • Dramane Coulibaly

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique)

  • Blaise Gnimassoun

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

The external deficits in SSA countries are a major concern and may be connected to emigration from these countries to advanced economies. According to the life cycle theory, by decreasing labour force, emigration induces a fall in savings and a deterioration in the external balance in the countries of origin. Migrants' remittances may dampen or even counterbalance this effect, depending on migrants' skills that matter for their propensity to remit. Empirical investigation for SSA countries over the period 1990–2014 shows that low-skilled emigration improves the current account balance, whereas high-skilled emigration worsens it because highly skilled emigrants have higher saving potential but tend to remit less than low-skilled ones. Therefore, incentives for the financing of home economies by skilled migrants would be beneficial.

Suggested Citation

  • Dramane Coulibaly & Blaise Gnimassoun, 2023. "Emigration and External Imbalances in Sub-Saharan Africa: Do Migrants' Skills Matter?," Post-Print hal-04264258, HAL.
    • Handle: RePEc:hal:journl:hal-04264258
    DOI: 10.1093/jae/ejad008
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    Cited by:

    1. Gislain Stéphane GANDJON FANKEM & Dieudonné TAKA & Sévérin TAMWO, 2023. "The effects of new skills acquired abroad by return migrants on social relations and quality of life in Cameroon," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 58, pages 21-49.

    More about this item

    Keywords

    SSA; External imbalances; Remittances; Saving; International migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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