Does Emigration Encourage Economic Growth in the Pacific Island Nations?

Seema Wati Narayan, Biman Prasad and Vinal Vinay Kumar

Emerging Markets Finance and Trade, 2025, vol. 61, issue 15, 4857-4877

Abstract: This study examines the effect of emigration on economic growth in Pacific Island Countries (PICs). Emigration causes brain drain; nonetheless, remittances from emigrants may provide economic advantages for their countries of origin. Our findings suggest that emigration slightly enhances growth in PICs; however, remittance inflows impede growth and fail to mitigate the adverse effects of emigration. International help, encompassing technical support, enhances growth potential; nevertheless, when paired with local talent, it fails to alleviate the skill deficit resulting from brain drain. Our quantile regression analysis shows that emigration and other factors affect nominal GDP growth, particularly at the extremes of high or low growth rates. We examine these findings and their implications for policy.

Date: 2025
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DOI: 10.1080/1540496X.2025.2533250

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