article · Repository of the University of Primorsk (University of Primorska)
Evidence on the effect of remittances on human capital development in Africa remains mixed, with limited evidence on the educational attainment of most African migrants. Understanding these patterns is crucial to assessing whether migration leads to brain drain or brain gain. This study examines labour migration from Africa and the role of remittances in shaping school enrolment rates. Using the panel-corrected standard error (PCSE) and feasible generalized least squares (FGLS) methods, the analysis accounts for heteroscedasticity, autocorrelation, and cross-sectional dependence, providing reliable estimates. The results indicate that most African migrants have attained secondary level of education, while remittances significantly improve primary and secondary enrolment, with no significant effect on tertiary education. Findings also showed that real GDP, government expenditure, and access to electricity enhance enrolment outcomes. These findings suggest that while remittances build foundational human capital, policy interventions are needed to channel resources toward educational outcomes, particularly higher education, to ensure sustainable growth in Africa.
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