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Migration and Development: Recent Evidence and Some Lessons for Africa

Migration and Development: Recent Evidence and Some Lessons for Africa. International Conference Sustainable Growth and Development in Africa Dakar, November 25, 2013 Christian Ebeke International Monetary Fund Washington, D.C., USA. International migration: What’s behind the ramp-up?.

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Migration and Development: Recent Evidence and Some Lessons for Africa

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  1. Migration and Development: Recent Evidence and Some Lessons for Africa International Conference Sustainable Growth and Development in Africa Dakar, November 25, 2013 Christian Ebeke International Monetary Fund Washington, D.C., USA

  2. International migration: What’s behind the ramp-up?

  3. Upward trend in migration across destinations …

  4. … with an important share within Sub-Saharan Africa.

  5. Host countries’ immigration policies have tightened for migrants from the developing world …

  6. Female emigration is relatively large

  7. However, there is a large heterogeneity in emigration intensities in Sub-Saharan Africa.

  8. Is Sub-Saharan Africa loosing its “Brain”?

  9. Skilled emigration from Africa is not necessarily large compared to other regions …

  10. … although in critical sectors such as health, the direct leakage seems important.

  11. Some countries saw a rise in outflows …

  12. … with young qualified physicians exiting Africa’s labor force.

  13. Is the Sub-Saharan region benefiting from remittances?

  14. Remittance inflows to Sub-Saharan Africa have fully recovered their pre-crisis levels …

  15. … and represent an effective insurance mechanism against disasters events …

  16. … and during political conflicts.

  17. Remittance inflows also help mitigate food price shocks …

  18. Remittance inflows are strongly associated with booms in the construction sector in SSA…

  19. … thereby reducing the prevalence of working poverty.

  20. Now, let’s discuss some new empirical evidences: Political and Institutional Effects of Migration

  21. Migration and Transfers of Norms • Return migration and: • Voter turnout ratesin Mali: (Chauvet and Mercier, 2013) • Convergence in fertility choices in Egypt: (Bertoli and Marchetta, 2013) • Cross-country study of the convergence in fertility rates: Beine et al. (2013). • Migration and governance back home • In Cape Verde: Batista and Vicente (2012) • Emigration and democracy: • Cross-country work: Docquier et al. (2011)

  22. Remittance inflows are associated with lower political accountability in Sub-Saharan Africa …Ebeke and Yogo (2013).

  23. … therefore reducing the political business cycle.Combes, Ebeke and Maurel (2013).

  24. How best to maximize the benefits of migration in Sub-Saharan Africa?

  25. More dual-citizenship laws?

  26. Remittances are significantly larger in countries allowing holding multiple-citizenships …Ebeke (2013).

  27. … and so is the sensitivity of private investment to remittances. (Ebeke, 2013).

  28. Barriers to people mobility exist, even in the sending countries! Look at passport costs …

  29. Passport costs are especially high in Sub-Saharan Africa

  30. How about remittance transaction costs?

  31. Sending money to Africa is more costly …

  32. … and more so when considering within-Africa corridors.

  33. Sending money to Africa also takes much more time to arrive…

  34. … and even more within Sub-Saharan Africa’s corridors.

  35. Costs are too high across operators, …

  36. … , and sending money to Sub-Saharan Africa is achieved from a less competitive market structure …

  37. … especially in within-Africa corridors.

  38. Unresolved issues in the migration-development literature • Long-term growth and development? Despite strong evidence that migration and remittances lower poverty, no strong evidence that they promote long-term growth. Why? • Does the size matter? • Brain drain? • Remittances fully consumed rather than re-invested? • Are remittances an engine of informal sector growth? • Public moral hazard: Migration/Remittances increase corruption (Abdih et al., 2011; Ahmed, 2013), reduce public social spending (Ebeke, 2012). • Private sector’s moral hazard: reduce accountability and voter turnout (Ebeke and Yogo, 2013), remittances and lower labor force supply. • Harnessing the diasporas: • How to maximize the re-investment of migrant remittances? • and how to fully internalize the benefits of returnees?

  39. Thank you for your attention.

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