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Migration and Development: Recent Evidence and Some Lessons for Africa

This conference explores the recent evidence and lessons regarding migration and development in Africa, focusing on the upward trend in migration, the impact of remittance inflows, and the political and institutional effects of migration. It also discusses the barriers to people mobility and unresolved issues in the migration-development literature.

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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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