In recent years the issue of return migration and development has gained the unprecedented attention of practitioners, policymakers, and international organizations. In particular, the International Organization for Migration’s assisted voluntary return program seems to be the subject of increasing euphoria and optimism. However, the most overlooked aspect of return migration and entrepreneurship has been the binding constraints facing returnee entrepreneurs in their home countries. Drawing on field survey data, this study examines the impediments to returnees’ entrepreneurship in the Ghanaian capital city of Accra using Principal Component Analysis (PCA) and Structural Equation Modeling (SEM) techniques. The results show that only finance appears to be a key impediment, with a direct relationship with returnees’ entrepreneurial activities. Further synthesis of the path analysis of this study shows that access to credit and business training could facilitate returnees’ foreign acquired financial and human capital into sustainable entrepreneurial activities in Ghana.
If the inline PDF is not rendering correctly, you can download the PDF file here.
Åkesson L. & Baaz M. E. (2015). Introduction. In L. Åkesson & M. E. Baaz (Eds.) Africa’s return migrants: new developers? (pp. 13-14). London: Nordic Africa Institute.
Alagidede P. Baah-Boateng W. & Nketiah-Amponsah E. (2013). The Ghanaian economy: An overview. Ghanaian Journal of Economics.
Ammassari S. (2004). From nation-building to entrepreneurship: The impact of élite return migrants on Côte d’Ivoire and Ghana. Population Space and Place 10 133–154.
Anarfi J. K. & Jagare S. (2005). Towards the sustainable return of West African transnational migrants: What are the options? New Frontiers of Social Policy: Arusha Conference.
Arbuckle J. L. (1999). AMOS 4.01 [Software]. Chicago: SmallWaters.
Asenso-Okyere W. K. Twum-Baah K. A. Kasanga A. Anum J. & Portner C. (2000). Ghana living standards survey report of the fourth round (GLSS 4) Accra: Ghana Statistical Service.
Beauchemin C. (2012). Migrations between Africa and Europe: Rationale for a survey design. MAFE Methodological Notes INED: Paris.
Bjarnesen J. (2013). Diaspora at home? Wartime mobilities in the Burkina Faso – Côte d’Ivoire transnational space. PhD thesis Uppsala University.
Black R. & Castaldo A. (2009). Return migration and entrepreneurship in Ghana and Côte D’ivoire: The role of capital transfers. Tijdschrift voor Economische en Sociale Geografie 100 44–58.
Black R. Russell K. & Tiemoko R. (2003). Migration return and small enterprise development in Ghana: A route out of poverty? Sussex Migration Working Paper University of Sussex: Brighton.
Bollen K. A. (1989). Structural equations with latent variables. New York: Wiley.
De Bruijn M. Dijk R. V. & Foeken D. (2001). Mobile Africa: An introduction. In M. De Bruijn R. V. Dijk & D. Foeken (Eds.) Mobile Africa: changing patterns of movements in Africa and beyond (pp. 1-8). Leiden: Bill.
De Haas H. (2006). Engaging diasporas. How governments and development agencies can support diaspora involvement in the development of their origin countries. International Migration Institute University of Oxford.
De Haas H. (2010). Migration and development: A theoretical perspective. International Migration Review 44 227-264.
De La Barre J. (2007). Conditions et perspectives de retour des immigrés au Cap-Vert et mobilisation de la diaspora pour le développement. For the OECD Experts Meeting on Return Migration and Development. Paris: Mimeo.
Dollar D. Hallward-Drieneir M. & Mengistae T. (2005). Investment climate and firm performance in developing countries. Economic Development and Cultural Change 54 1-31.
Dumont J. C. & Spielvogel G. (2008). Return migration: A new perspective. International Migration Outlook Part III. Paris: OECD Publishing.
Dustmann C. & Kirchkamp O. (2002). The optimal migration duration and activity choice after emigration. Journal of Development Economics 6 351-372.
European Commission (2011) Commission staff working paper: Migration and development sec (2011) 1353 final Brussels. [Online] Available: https://ec.europa.eu/europeaid/sites/devco/files/swp-migration-and-development-1353-20111118_en_11.pdf. (September 5 2017)
Grossman S. J. & Hart O. (1986). The cost and benefits of ownership: A theory of vertical and lateral integration. Journal of Political Economy 94 691-719.
Gubert F. De Vreyer P. & Robilliard A. S. (2007). Return migrants in Western Africa: Characteristics and labour market performance. Prepared for the OECD Experts Meeting on Return Migration and Development Paris: Unpublished.
Hamilton A. & Hudson J. (2014). Bribery and identification evidence from Sudan. Bath Economic Research Paper No.21/14 University of Bath: UK.
Hausmann R. & Nedelkoska L. (2017). Welcome home in a crisis: Effects of return migration on the non-migrants’ wages and employment. Centre for International Development Working Paper No. 330 Harvard University.
Hausmann R. Klinger B. & Wagner R. (2008). Doing growth diagnostic in practice: A mind book. Centre for International Development Working Paper No. 177 Harvard University.
Hooper D. Coughlan J. & Mullen M. (2008). Structural equation modelling: Guidelines for determining model fit. Electronic Journal of Business Research Methods 6 56-60.
International Organization for Migration. (2004). Glossary on Migration. IOM: Geneva.
International Organization for Migration. (2009). Assisted voluntary return and reintegration programme (AVRRP). IOM: Accra.
International Organization for Migration (2017) A baseline assessment of household remittances. [Online] Available: https://www.iom.int/news/iom-study-ghana-finds-remittances-nearly-doubled-household-incomes-2016 (August 9 2017)
Jöreskog K. G. & Sörbom D. (1982). Recent developments in structural equation modelling. Journal of Marketing Research 19 404-416.
Jöreskog K. G. & Sörbom D. (2003). LISREL 8.54 for Windows (Computer Software). Lincolnwood: Scientifc Software International.
Kaiser F. H. (1974). An index of factor simplicity. Psychometrika 39 31-36.
Kaplan D. (2000). Structural equation modelling: Foundations and extensions. Thousand Oaks CA: Sage.
Kline R. B. (2005). Principles and practices of structural equation modelling. (2nd ed.). New York: Guilford Press.
Lucas R. (2005). International migration and economic development: Lessons from low-income countries. UK: Edward Elgar.
Marchetta F. (2012). Return migration and the survival of entrepreneurial activities in Egypt. World Development 40 1999-2013.
Mattoo A. Neagu I. C. & Özden Ç. (2008). Brain waste? Educated immigrants in US labor market. Journal of Development Economics 87 255-269.
Mazzucato V. (2007). Return migration in Ghana: An overview. Report commissioned by OECD Experts Meeting on Return Migration DELSA/ELSA/MI/RD (2008)8 Paris: OECD.
McCaskie T. C. (2008). The United States Ghana and Oil: Global and local perspectives. African Affairs 107 312-332.
Mesnard A. (2004). Temporary migration and capital market imperfections. Oxford Economic Papers 56 242-262.
Mountford A. (1997). Can a brain drain be good for growth in the source economy? Journal of Development Economics 53 287-303.
Muthén L. & Muthén B. (1998). MPlus (Version 2.01) [Computer Software]. Los Angeles: Muthén & Muthén.
Naudé W. (2008). Entrepreneurship in economic development. Research Paper No. 2008/20 World Institute for Development Economics Research Helsinki.
Nugent P. (1995). Big men small boys and politics in Ghana: Power ideology and the burden of history. New York: Pinter Publishing.
O’Brien T. Nedelkoska L. & Frasheri E. (2017). What is the binding constraints to growth in Albania? Center for International Development Harvard University.
Organization for Economic Co-operation and Development. (1996). Migrants: Partners in development cooperation. Paris: OECD.
Oud J. H. L. & Folmer H. (2008). A structural equation approach to models with spatial dependence. Geographical Analysis 40 151-166.
Paulson A. L. & Townsend R. (2004). Entrepreneurship and financial constraints in Thailand. Journal of Corporate Finance10 229–262.
Piracha M. & Vadean F. (2010). Return migration and occupational choice: Evidence from Albania. World Development 38 1141–1155.
Plaza S. & Ratha D. (2011). Harnessing Diaspora resources for Africa. In S. Plaza & D. Ratha (Eds.) Diaspora for development in Africa (pp. 1-40). Washington DC: World Bank.
Ravenstein E. G. (1885). The laws of migration. Journal of the Statistical Society of London 48 167-235.
Saxenian A. L. (2002). Silicon Valley's new immigrant high-growth entrepreneurs. Economic Development Quarterly 16 20-31.
Schiff M. & Özden Ç (2006). International migration remittances and the brain drain. New York: Palgrave Macmillan.
Schoumaker B. Flahaux M.-L. Mangalu M. & Agbada J. (2013). Changing patterns of Congolese migration. MAFE Working Paper 19. Paris: Institut National d’Études Démographiques (INED).
Schreiber J. B. Nora A. Stage F. K. Barlow E. A. & King J. (2006). Reporting structural equation modeling and confirmatory factor analysis results: A review. The Journal of Educational Research 99 323-338.
Seker M. & Yang J. S. (2012). How bribery distorts firm growth: Differences by firm attributes. Policy Research Paper 6046 Washington D.C.: World Bank.
Taylor S. D. (2014). Capitalism and African business cultures. World Institute for Development Economics Research Working Paper 2014/054 Helsinki.
Twum-Baah K. A. (2005). Volume and characteristics of international Ghanaian migration. In T. Manuh (Eds.) At home in the world? international migration and development in contemporary Ghana and West Africa (pp. 55-77). Accra: Sub-Saharan Publishers.
Wang J. & Staver J. (2001). Examining relationships between factor of science education and student career aspiration. The Journal of Educational Research 94 312-319.
Woodruff C. & Zenteno R. (2007). Migration networks and microenterprises in Mexico. Journal of Development Economics 82 509–528.
World Bank Enterprise Survey (2013) Ghana Country Profile. [Online] Available: http://www.enterprisesurvey.org (August 8 2016)
World Bank. (2015). World Development Indicators 2014 Washington D.C.: World Bank.
World Bank (2017) Doing business 2017: Equal opportunity for all. [Online] Available: http://www.doingbusiness.org/~/media/wbg/doingbusiness/documents/profiles/country/gha.pdf (October 31 2017)
World Economic Forum (2017) Global Competitiveness Report 2016-2017. [Online] Available: http://www3.weforum.org/docs/GCR20162017/05FullReport/TheGlobalCompetitivenessReport2016-2017_FINAL.pdf (September 11 2017)
Zainudin A. & Jusoff K. (2009). The effects of corporate reputation on the competitiveness of Malaysian telecommunication service providers. International Journal of Business and Management 4 173-178.