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

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  • 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)

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.

Suggested Citation

  • Mohammed A. M. Usman & Huseyin Ozdeser & Behiye Çavuşoğlu & Umar Shuaibu Aliyu, 2022. "On the Sustainable Economic Growth in Sub-Saharan Africa: Do Remittances, Human Capital Flight, and Brain Drain Matter?," Sustainability, MDPI, vol. 14(4), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2117-:d:748102
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    1. Simplice A. Asongu & Joel Hinaunye Eita, 2023. "Promoting renewable energy consumption in Sub-Saharan Africa: how capital flight crowds-out the favorable effect of foreign aid," Working Papers of the African Governance and Development Institute. 23/048, African Governance and Development Institute..

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