Quantitative Economics and Management Studies
Vol. 2 No. 1 (2021)

Macroeconomic Impact of Refugee Inflow on West African Countries

Louis Sevitenyi Nkwatoh (Yobe State University, KM 7 Gujba Road, Damaturu and PMB 1144, Nigeria)
Kekere Sule Ibrahim (Ahamadu Bello University, Samru Street, No 3, Nigeria)



Article Info

Publish Date
07 Jan 2021

Abstract

This study investigated the macroeconomic effect of refugee inflow on West African Countries using a panel vector autoregressive approach over the period 1992 to 2018. Our results provide evidence that a positive refugee shock induces a positive effect on GDP per capita, government consumption and labour force. On the other hand, the effect of a shock to refugee exerts a negative effect on the fiscal balance of host Countries. The overall result from the variance decomposition indicates that refugees prefer to migrate to Countries with better economic activities as reflected by the GDP per capita and labour supply, even though the magnitude of contribution of refugees to economic activities is small and significant only in the short run. Hence, refugees do not constitute an economic burden to West African States, but however induce a negative effect on their fiscal balance via extra budgetary expenditure. This calls for a global response to refugee crisis with respect to its fiscal implication on host Countries. This may go a long way in averting another circle of crisis because refugees often exacerbate the worsening economic and social problems of host Countries, leading to increase in government consumption.

Copyrights © 2021






Journal Info

Abbrev

qems

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Mathematics

Description

Journal of Quantitative Economics and Management Studies (QEMS) is an international peer-reviewed open-access journal dedicated to interchange for the results of high-quality research in all aspects of economics, management, business, finance, marketing, accounting. The journal publishes ...