Human Capital Flight and Economic Growth in Nigeria

Abstract

This study empirically investigated the effect of human capital flights on economic growth in Nigeria from 1981 to 2020. It used recent advances in time series analysis, which are fractional integration and co-integration framework. The net migration rate and remittance were used to capture human capital flight. The results show that shocks and spikes in human capital flight variables have a lasting effect. However, the Hausman test of fractional co-integration revealed that a long-run relationship does not exist between human capital flight and economic growth. This may be due to an increasing youth population and an abundant labor market. Therefore, this study eases the fear of a detrimental human capital flight on Nigeria’s economic growth over the study period and does not find evidence of a gain through remittances. Hence, the government should facilitate the productive use of migrant remittances by improving financial literacy, encouraging investment in productive assets, and providing a favorable environment for small enterprises.

Keywords

• human capital flight
• economic growth
• fractional co-integration
• nigeria