TITLE:
A Panel Data Analysis of the Impact of Chinese Foreign Direct Investment (FDI), Remittances and Foreign Aid on Human Capital Growth and Brain Drain in Africa
AUTHORS:
Odette Tougem Tasinda, Tian Ze, Sunday Adiyoh Imanche
KEYWORDS:
Chinese Foreign Direct Investment (FDI), Remittances and Foreign Aid, Human Capital Growth, Africa Brain Drain, Autoregressive Distributed Lag (ARDL) Modeling
JOURNAL NAME:
Journal of Data Analysis and Information Processing,
Vol.9 No.3,
August
26,
2021
ABSTRACT: The main purpose of this research was to analyze the impact the Chinese foreign direct
investment (FDI), remittances, and foreign aid have had to human capital growth
(HCG) and brain drain. The study data were collected from five African countries (Nigeria, Kenya, Ghana, South
Africa, and Morocco) from 2009 to 2018. Secondary sources were used in data
collection, then autoregressive distributed lag (ARDL) modeling was used in the
analysis. Before modelling was done, co-integration tests and panel unit were
applied. The results revealed that Chinese FDI, remittances, and foreign aid
had a significant and positive impact on HCG in the long but not the short-run.
Besides, remittances, Chinese FDI, and foreign aid demonstrated significant
negative impacts on brain drain in the long term, not in the short term. This
study makes important practical and theoretical contributions about the roles
of Chinese FDI, remittances, and foreign aid in the reduction of brain drain
and the growth of human capital.