Open access Articles CC BY 4.0 December 19, 2025

Open Access Article Economics Macroeconomics

Tourism, Migration, And Productive Capacity Growth In Sub-Saharan Africa

Authors

Authors: Anthony Orji1, Elis Moses Onoh2, Onyinye Imelda Anthony-Orji3,*, Jonathan Emenike Ogbuabor4, Oluchi Okoro5, Joseph Fanen Akpesue6

Author info & affiliations
  1. Department of Economics, University of Nigeria, Nsukka, Enugu State, Nigeria
  2. Department of Economics, University of Nigeria, Nsukka, Enugu State, Nigeria
  3. Department of Economics, University of Nigeria, Nsukka, Enugu State, Nigeria
  4. Department of Economics, University of Nigeria, Nsukka, Enugu State, Nigeria
  5. Department of Economics, University of Nigeria, Nsukka, Enugu State, Nigeria
  6. Department of Economics, University of Nigeria, Nsukka, Enugu State, Nigeria
  7. * Author to whom correspondence should be addressed.

Publication: Innovation Economics Frontiers, Vol. 28 No. 2 (2025), pp. 31-40 https://doi.org/10.36923/ie-frontiers.v28i2.406

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Abstract

Productive capacity has emerged as a critical indicator of long-term economic development, particularly for regions undergoing rapid structural transformation, such as Sub-Saharan Africa (SSA). Despite increasing global interest, the key drivers of productive capacity in SSA remain insufficiently explored, especially within the context of tourism and migration. Existing studies predominantly rely on GDP-based growth models and often examine tourism and migration separately, overlooking their combined influence on structural development. Moreover, the role of institutional quality in shaping productive capacity is under-investigated. This study examines how international tourism and migration affect productive capacity growth in SSA, while also considering the contributions of urbanization, trade openness, and institutional quality. Using panel data from 38 SSA countries between 2011 and 2021, the analysis employs a dynamic System Generalized Method of Moments (System GMM) estimator to address endogeneity, unobserved heterogeneity, and simultaneity among variables. The results indicate that international tourism and migration exert positive and statistically significant effects on productive capacity. Institutional quality emerges as the most influential driver, followed by urbanization and trade openness. These findings underscore the importance of structural and governance-related factors in enhancing the region’s productive capacity. Tourism and migration contribute meaningfully to productive capacity growth; however, their impact is substantially conditioned by the quality of governance and structural enablers. Policymakers should adopt sustainable tourism strategies, strengthen security and infrastructure, develop migration-friendly frameworks, enhance human capital, and prioritize institutional reforms to maximize long-term productive capacity in SSA.

Article information

Keywords
Productive capacityInternational tourism receiptsNet migrationSystem GMMGrowth In Sub-Saharan Africa
Section
Articles
Issue
Vol. 28 No. 2 (2025)
Pages
31-40
Submitted
September 27, 2025
Accepted
November 27, 2025
Published
December 19, 2025
Corresponding author
Onyinye Imelda Anthony-Orji
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