Remittances and the National Household Disposable Income in Nigeria (1980-2025): Dynamic Forecasting Approach (original) (raw)
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International Remittances and Economic Growth of Nigeria
AE-FUNAI JOURNAL OF ACCOUNTING, BUSINESS AND FINANCE(FJABAF), 2020
The paper investigated the effect of international remittances on the economic growth of Nigeria for the period covering 1986 to 2017. In analyzing the data collected the ARDL approach to cointegration and VECM was adopted to determine the long run and short-run relationships among economic growth, remittances, gross domestic investment, Interest rate, and inflation rate. Findings indicated that in the long run remittances, human capital, and inflation rate had a positive effect while GDI and interest rate had a negative effect on the economic growth of Nigeria. In the short run remittances, human capital, GDI, and inflation rate had a positive effect while interest rate had a negative effect on the economic growth of Nigeria. In view of the findings the study amongst others recommend that Government should put in place facilities and incentives that will make remittances cheaper using the formal channel, also the introduction of new savings instruments as well as providing information on investible opportunities available in Nigeria will ensure remittance are put into productive use. The creation and functioning of the Migrants and Diaspora Office domiciled in the Ministry of Foreign Affairs will serve as a fulcrum in stepping up remittances.
The effect of remittances on the Nigerian economy
This study analyzed the effect of remittances on the Nigerian economy. The study employed secondary data covering the period 1980-2008. Data sources included official publications of the World Bank, Central Bank of Nigeria, National Bureau of Statistics, Journals and other relevant publications. Data collected were analyzed using trend and regression analysis. Results of data analysis revealed that remittance inflow has been on the increase over the past two decades. Also, remittances, per capita income, investment and time were the positive and significant factors influencing output while consumer price index significantly influenced output negatively. It was recommended that remittance receiving countries should provide a friendly economic environment through sound macroeconomic policies, including stable exchange rates, basic physical infrastructure, improved market integration, reliable financial and other institutions, transparent legal system and good governance – in essence, conditions that can prime the economy for development and equip it adequately to benefit from this external stimulus.
Dynamic Modelling of the Influence of Diaspora Cash Remittance on Macroeconomic Stability in Nigeria
European Journal of Social Sciences Studies, 2022
Remittance flows into low-income and fragile states represent a lifeline that supports households as well as provides much-needed tax revenue (IMF - Sayeh & Ralp Chami; 2021). Purpose: on the basis of this record, the study sought to examine the dynamic modelling of the influence of diaspora cash remittance as measured by Personal Remittances Received (PRR); Exchange Rate (EXCHR); and Outward Remittances Flows (ORF) on macroeconomic stability in Nigeria as measured by Unemployment Rate (UNEMPR) and Gross Domestic Product per capita growth (GDPpcgr) using quarterly time-series data sourced from World Bank and World Development Indicators for the periods 2010Q1-2020Q4. Technique/Approach: the study was disintegrated to apply Engle-Granger two-step method of error correction model (ECM) together with Granger Causality test to analyse the causal effect of Personal Remittances Received; Exchange Rate; Outward Remittances Flows on Unemployment Rate, as well as, utilize vector autoregressi...
Remittances and Economic Growth in Niger: An Error Correction Mechanism Approach
Journal of Social and Economic Statistics
Migration has for a long time been a significant source of revenue for a huge number of persons in the Republic of Niger. In order to improve their families living condition, a great number of young people in Niger follow the migration path. In 2019, a total of 293 million U.S. dollars has been sent by migrants to their family members in Niger (World Bank, 2019), that is 3% of Niger GDP. The study used various time series econometric techniques including unit root test, Engle-Granger cointegration test, vector equilibrium correction method and some diagnostic tests on the residuals to inspect the connection between remittances and economic growth in Niger. The empirical results showed that there is the existence of a long run relationship between remittances and economic growth in Niger. The error correction term’s coefficient shows that about 51.62% of the discrepancy between long run and short run is corrected with a yearly data suggesting an acceptable rate of adjustment to equil...
Macroeconomic Drivers of Remittances and the Implication for Economic Growth in Nigeria
Applied Economics and Finance, 2018
Remittances have been one of the officially recorded sources of international flows, especially, to developing economies like Nigeria, hence the need to encourage its consistent flow as well as defining ways and means of redeploying it for an improved economy. Following this line of reasoning, an attempt was made in this study, to see whether the macroeconomic environment in the domestic economy can actually play a role in stimulating international remittance inflows. To achieve this, average remittance data were tested against that of per capita income, real exchange rate, trade openness, government expenditure, inflation rate and the demographic variable (population density), and the data were all from secondary sources (WDI and CBN Bulletin, 2017/2018). Drawing from the type of gravity model suggested by Greenwood (1975) and Borjas (1987, 1989) ¨C as modified - for analyzing international migration, and exploring the two approaches to international remittances analysis ¨C altruis...
2013
The paper investigates the empirical impact of the workers’ remittances on economic growth in Nigeria. Using a time series data, from 1970-2010 in an error correction methodology (ECM), the long-run static model indicates that workers’ remittances is significant and has positive impacts on economic growth. Furthermore, the short-run dynamic model revealed that the lagged value of workers’ remittances is significant and impacts positively on economic growth. The coefficient of the error correction term (ECT) in the short-run dynamic model is statistically significant and appropriately signed. Consequently, the paper recommends the need to provide adequate infrastructure for attracting more remittances into the economy through formal financial sector channel as well as measures encouraging the recipients to channel such into productive sector or through domestic savings that would boost investment and economic growth, rather than enmeshed in non-productive activities.