Impact of skilled labour migration on energy, environment and economic growth in home and host countries: A computable general equilibrium analysis.

The migration of both unskilled and skilled labour force can alter economic conditions and environmental sustainability of both host and home countries. Consequently, this study endeavors to investigate the impact of skilled labour migration on economic growth, energy demand, and environmental sustainability of both home and host countries. This objective is achieved by constructing a multiregional computable general equilibrium model for developed and developing countries. Moreover, developing countries are classified into four distinct groups based on their income levels such as high income, upper middle income, lower middle‐income and low‐income countries. The outcome of policy simulations indicate that skilled labour migration diminishes the gross domestic product, welfare, energy consumption and carbon emissions in home countries, and the reverse is true for the host countries. The influx of remittances to home counties is shown to bolster their economic growth, energy consumption, and CO2 emissions, whereas a contrary trend in remittance outflow is observed in host countries. Likewise, reverse migration has the potential to augment economic growth in developing countries alongside an increase in energy demand and CO2 emissions. The study advocates for developed countries to harness the skills of immigrants in environment‐friendly manufacturing industries. Furthermore, it emphasizes that developing countries should utilise remittances for both socio‐economic and environmental development to retain the migration of skilled labour forces. [ABSTRACT FROM AUTHOR]