African Diaspora and Structural Economic Transformation of Africa: Lessons from Asia
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 3
Abstract
Income levels tend to converge across different regions through the diffusion of technology and productivity. Asian economies are closing income gap between them and high income countries, African economies are not. The literature has provided different reasons for this divergent performance, weak institutions, poor governance, poor policy choices, geography, natural resources endowment, among others. This paper concentrates on one of the reasons, Asia ability to leverage on its Diaspora in the West to diffuse social models that drive high productivity and encourage skill and technology transfer. The paper identifies five drivers of diaspora-induced development. First, domestic reforms help in encouraging investment. Second, stock of high quality human capital at home is important to complement diaspora investment and skill transfer. Third, decentralisation of global supply chain has also helped Asian giants, India and China, to integrate into global economy through service and manufacturing sectors respectively. Fourth, the perception by Western firms that business environment in developing countries were risky can propel Diaspora to invest in their host country just to prove otherwise, and fifth, identification of innovation-induced sector that can drive development and structural transformation. This paper draws it example from the success story of India and draws lessons for Africa.
Authors and Affiliations
Taiwo Owoeye, Abayomi Folorunso Waya
Keywords
Related Articles
- EP ID EP414836
- DOI 10.9790/5933-0903024551.
- Views 194
- Downloads 0
Public expenditure and poverty reduction in the WAEMU zone
The fight against poverty is increasingly at the centre of debates, seminars, symposia and workshops on economic and social development policies. This issue is of equal concern to the governments of poor countries and to...
Socio-Economic Implications of Migrants’ Dollars in Nigeria: A Bounds Test Approach toCo integration
Migrants’ dollars play fundamental roles in the recipient’s economy, especially for the migrant’s households who rely on them for mitigating incidences of poverty and improving their living standard. In this paper, effor...
Fiscal Policy and Public Debt in Kenya
Fiscal policy in Kenya has been unstable. Fiscal balance to GDP ratio worsened from a surplus of 0.2 percent to a deficit of 7.6 percentwhile debt to GDP ratio rose from 25.4 to 56.2 percent between 1963 and 2015. This w...
Real Estate Financial Risk Prevention A Study Based on the Perspective of Commercial Banks
Almost more than half of the funds of the real estate industry come from bank loans in China. Once the risk exposure of the real estate industry will seriously affect bank risks, it may even lead to systemic financial ri...
SHG as an Effective Approach to Women Empowerment
All round development of a nation would be possible only when women are considered as equal partners in progress with men, as women are the integral part of every economy. Today women empowerment is one of the most vibra...