EconPapers    
Economics at your fingertips  
 

On the Sustainable Economic Growth in Sub-Saharan Africa: Do Remittances, Human Capital Flight, and Brain Drain Matter?

Mohammed A. M. Usman, Huseyin Ozdeser, Behiye Çavuşoğlu and Umar Shuaibu Aliyu
Additional contact information
Mohammed A. M. Usman: Department of Economics, Near East University, Boulevard, Nicosia 99138, North Cyprus, Mersin 10, Turkey
Huseyin Ozdeser: Department of Economics, Near East University, Boulevard, Nicosia 99138, North Cyprus, Mersin 10, Turkey
Behiye Çavuşoğlu: Department of Economics, Near East University, Boulevard, Nicosia 99138, North Cyprus, Mersin 10, Turkey
Umar Shuaibu Aliyu: Department of Economics, Near East University, Boulevard, Nicosia 99138, North Cyprus, Mersin 10, Turkey

Sustainability, 2022, vol. 14, issue 4, 1-20

Abstract: To solve the active macroeconomic challenges of remittances, human capital flight, and brain drain facing Sub-Saharan Africa (SSA) from the perspective of costs and benefits tradeoffs for achieving Sustainable Development Goal eight (SDGs-8) targets by 2030 and the recipient communities’ wellbeing, this study investigates the sustainable economic growth in SSA: Do remittances, human capital flight, and brain drain matter? Autoregressive-Distributive Lag (ARDL) and the Error-Correction Mechanism (ECM) were used. Thus, this research is led by push–pull, altruism, and social network theories. The ARDL showed that remittances and trade positively affect economic growth. However, human capital flight, poverty, corruption, and inequality negatively affect economic growth. The co-efficient of ECT t−1 is ascertained to be negative (−0.266282) with a significant statistical value of 1% (i.e., 0.0123). Therefore, the annual requirement to restore equilibrium convergence is 26.62%. The study concludes that SSA may achieve their sustainable economic growth target, particularly by formalizing remittances and human capital flight and brain drain into the financial, economic system in SSA by 2030, since restoration to long-term convergence will take less than nine years. Enabling a labor market that offers decent work and wages, along with trade and remittance policies for sustainable growth, are recommended.

Keywords: remittances; human capital flight and brain drain; Economic Growth; Panel ARDL; SSA; SDGs; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/4/2117/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/4/2117/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:4:p:2117-:d:748102

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager (indexing@mdpi.com).

 
Page updated 2024-12-28
Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2117-:d:748102