Local Economic Impacts of Human Capital Migration

International Human Capital migration is one of the key components of micro economic development in a labour supplying country. The returns of migration play a significant role in the economic development and growth of the source country. The remittance causes a positive Balance of Payment as well as poverty eradication in Bangladesh. These Human Capital migrations also have impacts on micro economic issues like local and household economy, which have received very little attention in existing studies. The purpose of this paper is to describe the impacts of international labour migration on local economic development. Therefore, to check the issue, this study collected primary data based on a questionnaire survey from 306 Bangladeshi workers who are engaged in wage-earning employment in Malaysia during the period of Nov-Dec 2010. This study analysed the data based on the Path Measurement Model. This empirical study found that international Human Capital migration significantly improves the local and household economy of Bangladesh such as house ownership, improvement of economic conditions, donation towards local institutes and infrastructure, new work experience, new skills, and poverty reduction. Some initiatives such as communication skills, maintaining and improving economic diplomacy and discouraging the Hundi System (Illegal remittance transfer system) are suggested to improve these rising consequences of international migration in Bangladesh. DOI: 10.5901/mjss.2015.v6n3s1p56