Out-migration and Remittances: Evaluating the Relationship between Out-migration and Remittances on the Lebanese Economy

Abstract: With socio-economic hardships arising and dramatically worsening as a cause of the present-day financial crisis, The World Bank has warned against severe cases of brain drain as emigration becomes increasingly desirable to the Lebanese population. Lebanon, already possessing one of the world’s largest diaspora, can be characterized as being one of the largest remittance-receiving countries, where remittance inflows make up a significant proportion of national GDP. This thesis looks into the relationship between out-migration and economic development in Lebanon by analyzing relevant indicators to explore whether out-migration has a negative impact on the economy, i.e. brain drain, or if it may be beneficial as remittances are being contributed during such time of crisis. The thesis employs a single case study with the use of secondary quantitative data collected through various international organizations’ databases and relevant academic publications. The data is then displayed graphically to be able to identify and discuss trends and changes observed. The thesis closes with a discussion about how out-migration may be both beneficial in that it serves as a ‘safety net’ for Lebanese households yet may also be negative in that it leads to brain drain. Suggestions for further research are included that argue for the importance of updated and complete official statistics on Lebanon so that more research may be conducted with higher reliability.