African Leaders: Their Education Abroad and FDI Flows

Leaders are critical to a country's success. They can influence domestic policy via specific measures that they enforce, and they can also influence international public opinion towards their country. Foreign Direct Investments are also essential for a country's economic growth. Our hypothesis is that foreign-educated leaders attract more FDI to their country. Our rationale is that education obtained abroad encompasses a whole slew of factors that can make a difference in FDI flows when this foreign-educated individual becomes a leader. We test this hypothesis empirically with a unique dataset that we constructed from several sources, including the Library of Congress and the World Bank. Our analysis of 40 African countries employs the robust technique of conditional quantile regression. Our results reveal that foreign education is a significant determinant of FDI inflows, beyond other standard characteristics. While intuitive, this result does not necessarily indicate sheepskin effects or superior human capital obtained abroad. Rather, it indicates the powerful role of the social capital, networks, and connections that these leaders built while they were abroad that they in turn mobilize and utilize when they become leaders.FDI, Leaders' Educational level, return migration, Africa

Surviving the Turbulence Is Not Enough: Can Côte d'Ivoire Flourish Again?

Côte d'Ivoire is the world’s largest producer and exporter of cocoa beans, it accounts for 40% of the WAEMU's output, and 11% of its population are immigrant workers. Any political instability in the country will not only affect the domestic economy, but it will also affect the international trading markets. In addition, it will affect the West Africa region through trading of goods, through migration and the financial and banking sectors. With the new President sworn in on May 21, 2011, the political crisis is officially over. Real national reconciliation, however, will take much longer to happen. Serious economic issues need to be addressed, the country has high public debt, and its small and medium enterprises – the backbone of the economy – are severely hit. Côte d'Ivoire lags behind other developing countries in its preparedness and economic performance towards the Knowledge Economy, its educational sector is underperforming and powerless in producing a competitive labor force. Can the new President heal wounds and make the country flourish again?immigra, regional economics, Africa, economic development, education, national budget, public economics, government policy and regulation, international relations, conflict resolution, macroeconomic policy, trade, international migration, remittances

Brainy Africans to Fortress Europe: For Money or Colonial Vestiges?

Economic reasons along with cultural affinities and the existence of networks have been the main determinants explaining migration flows between home and host countries. This paper reconsiders these approaches combined with the gravity model and empirically tests the hypothesis that ex-colonial links can still play an important role in the emigration decision. We employ a general linear mixed model, and apply it to the case of skilled, educated and talented Africans, who migrate to Fortress Europe over the period of 1990 to 2001. While we find some differences in the exodus of skilled Africans by sub-regions, the magnitude of the colonial vestige in Africa is a significant determinant of emigration flows. Overall, Portugal is preferred to the UK which is preferred more than Belgium, Germany and Italy. Brainy Africans are, however, indifferent between the UK, France and Spain as a destination country. Established immigrant networks and higher standards of living with job opportunities in the host country are also very important drivers of the emigration of brainy Africans to the European ex-colonial powers.Skilled migration, Africa, colonization, networks, economic reasons

China's Overt Economic Rise and Latent Human Capital Investment: Achieving Milestones and Competing for the Top

We provide an overview of China's economic rise through time. Over the past decade, China has maintained 10% growth in GDP, albeit with a GDP per capita at the low level of a developing country. Its tremendous economic development has overlooked the growing social inequalities and rising resentments of the 'cheap' workers and those laid off. The main contributor to its ascension is international trade and investment in physical capital, often at the expense of the environment. The year 1978 was the landmark for the foundation of the Chinese modern higher education system. Since then the number of students enrolled in Chinese higher education institutions has increased dramatically; China is producing serious scholars and a tremendous amount of scholarly output; more and more Chinese students seek higher education abroad; and international students find a rising interest in receiving education in China.China, human capital, brain drain, higher education

China's Latent Human Capital Investment: Achieving Milestones and Competing for the Top

In this paper we provide an overview of China’s human capital strategy and educational achievements over the last two decades. While every one acknowledges China as an economic superpower, very few are aware of or realize China’s notable achievements in education as well as its internationalization of education. Since 1978, the landmark for the foundation of the Chinese modern higher education system China has made tremendous strides in education both domestically and internationally. While China maintains 10% growth in GDP, albeit with a GDP per capita at the low level of a developing country, it is also producing serious scholars and a tremendous amount of scholarly output; more and more Chinese students seek higher education abroad; and international students find a rising interest in receiving education in China.higher education, brain drain, human capital, China

Handelswettlauf um Asien: die Freihandelsabkommen der USA und der EU mit Südkorea

Schneller als vielfach erwartet findet die Weltwirtschaft den Weg aus der großen Krise. Dabei erweisen sich die asiatischen Staaten als besonders dynamisch. Amerika will durch eine Steigerung seiner Exporte Anschluss halten. Nach dem Scheitern der Doha-Runde stellt sich die Frage, ob bilaterale Freihandelsabkommen erfolgreiche Wege zur Handelsausweitung sein können. Die amerikanischen Erfahrungen sprechen dafür. Derzeit wird in den USA um ein Abkommen mit Südkorea gerungen. Die spezifischen Leistungsprofile dieser beiden Länder lassen einen besonders profitablen Handelsaustausch erwarten. Auch in der Europäischen Union steht eine - ebenfalls umstrittene - Übereinkunft mit Südkorea auf der Tagesordnung. Es läge im Interesse Europas, hier eine baldige Einigung zu erzielen. Davon würde auch Deutschland profitieren.Free Trade Agreements, South Korea, Doha Round, US-South Korean trade