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
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- DOI 10.9790/5933-0903024551.
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