Delineating The Role Of Foreign Direct Investment (FDI) And Other Migration Drivers In Africa

• Oluwagbenga Emmanuel Adebayo

  Department of Economics, Modibbo Adama University, Yola, Adamawa State, Nigeria

  Author

• Sikiru Jimoh Babalola

  Department of Economics, Modibbo Adama University, Yola, Adamawa State, Nigeria

  Author

• Suleiman Gambiyo Purokayo

  Department of Economics, Modibbo Adama University, Yola, Adamawa State, Nigeria

  Author

The study investigates the variables that influence net migration in selected African countries. The study employed Feasible Generalized Least Squares (FGLS) estimation with quadratic terms to analyse the effects of Foreign Direct Investment, unemployment, Inflation and GDP per capita on Net Migration across selected 13 African Countries, over the period of 6 years (2017-2022). The research hinged on the Neoclassical Theory of Migration, Migration Hump Theory, The FDI-led Migration Hypothesis, and Migration Networks Theory. The results of the study revealed that FDI exerts negative impact on net migration, while FDI squared has a positive influence on net migration. This inverted Ushaped relationship indicates that an increase in FDI favours emigration at the initial stages of development, after which emigration will start to fall. The effect of unemployment on net migration is positive and significant. Inflation has a negative non-significant effect on net migration. GDP per capita exerts negative influence on significant effect on net migration. This implies an increase GDP per capita tends to encourage emigration. The study therefore suggests that governments at various levels (national, regional and international) should implement policies to reduce inflation. Instead of depending solely on FDI, the policymakers should also encourage domestic investment, and better working conditions in the domestic labour market. 

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