Local Economic Impacts of Human Capital Migration

A S A Ferdous Alam,Rahmah Elfithri,Basri Talib,A C Er,Halima Begum,Chamhuri Siwar

doi:10.5901/mjss.2015.v6n3s1p563

Abstract

International Human Capital migration is one of the key components of micro economic development in a labour supplying country. The returns of migration play a significant role in the economic development and growth of the source country. The remittance causes a positive Balance of Payment as well as poverty eradication in Bangladesh. These Human Capital migrations also have impacts on micro economic issues like local and household economy, which have received very little attention in existing studies. The purpose of this paper is to describe the impacts of international labour migration on local economic development. Therefore, to check the issue, this study collected primary data based on a questionnaire survey from 306 Bangladeshi workers who are engaged in wage-earning employment in Malaysia during the period of Nov-Dec 2010. This study analysed the data based on the Path Measurement Model. This empirical study found that international Human Capital migration significantly improves the local and household economy of Bangladesh such as house ownership, improvement of economic conditions, donation towards local institutes and infrastructure, new work experience, new skills, and poverty reduction. Some initiatives such as communication skills, maintaining and improving economic diplomacy and discouraging the Hundi System (Illegal remittance transfer system) are suggested to improve these rising consequences of international migration in Bangladesh. DOI: 10.5901/mjss.2015.v6n3s1p563

Highlights

Once a person crosses the borders of his/her native country and stays in a different country for a period of time, it is called international migration (Stanat & Christensen, 2006)
These international migrants generally send back a portion of their income to the home country, which is called remittance. It is the second largest financial inflow, exceeding global aid in various developing countries. It plays an enormous role in the economy in many developing countries, and contributes to economic growth and livelihoods; it is often represented as a channel for better jobs, better salaries, etc. (Mamun and Nath, 2010)
Remittances create a scope for more consumption and have different effects on education and business

Summary

Introduction

Once a person crosses the borders of his/her native country and stays in a different country for a period of time, it is called international migration (Stanat & Christensen, 2006). There are several forms of international migrants such as, temporary migrants; undocumented migrants; highly skilled and business migrants; forced migration; irregular migrants; asylum seekers; family members; refugees; return migrants; and long-term, low-skilled migrants (OECD, 2006). These international migrants generally send back a portion of their income to the home country, which is called remittance. It is the second largest financial inflow, exceeding global aid in various developing countries. Non-migrant households benefit from remittances (Adams, 1991; Taylor, 1999)

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Conclusion