THE IMPACT OF REMITTANCES ON ECONOMIC GROWTH OF NIGERIA (1980 -2014)
Keywords:
Remittances, Economic Growth, Poverty, Diaspora and Migrants.
Abstract
This study examines the impact of remittances on economic growth of Nigeria from 1980 to 2014. The study was carried out using secondary data which were collected from the World Bank’s World Development Indicator Database, 2015. The data collected were analyzed using trend analysis, descriptive statistics, correlation analysis, unit root test, Ordinary Least Squares regression analysis and granger causality test. The results of the study suggests that remittances have a negative trend over the period of study. Remittances were found to granger cause economic growth over the period of study, though it has negative and statistically insignificant impact on economic growth. The study recommends among others that Nigerians in diaspora should channel their remittances to the real sector of the economy where its impact can be positively felt.
References
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Javid, M., Arif, U. and Qayyum, A. (2012). Impact of remittances on economic growth and poverty: Evidence from Pakistan. Academic Research International, Vol. 2, No. 1,.
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Levit, P. and Nyberg-Sorenson, N. (2004). Global migration perspectives. The transnational turn in migration studies. Retrieved July 26th 2016 from http://www.geim.org.
Lubambu, K. M.K. (2014). Impact of remittances on developing countries. European parliament directorate- general for external policies. Retrieved 15th July 2016 from www.europarla.europa.eu/activities/committee/studies.do?language=en
Oda, H. (2003). The Impact of Workers‟ Remittances on Economic Growth. Retrieved June, 16th 2016 from http://www.usaid.gov/press/releases/2003
Rather, D. (2004). “Enhancing the Development Effect of Remittance to Developing Countries”, Global Department Finance World Bank , Washington, D.C. Remittances: Guide for Compilers and Users. Washington, DC: IMF. 2010a. Balance of Payments Statistics Yearbook 2010.Washington, DC: IMF.
Siddiqui, T. (2004). „Efficiency of Migrant Workers’ Remittance: The Bangladesh Case. Asian Development Bank.
Siddique, A. Selvanathan, E.A. and Selvanathan, S. (2010). Remittances and Economic Growth: Empirical Evidence from Bagladesh, India and Sri Lanka. Griffiths University Queensland, Discussion Paper 10, 27.
Singh, R. J., Haacker, M., and Lee K. (2009). “Determinants and Macroeconomic Impact of Remittances to Sub-Saharan Africa.” Working Paper 09/216, International Monetary Fund, Washington, DC.
Smith, A. (1776). The Wealth of Nations. New York: Bantam Dell.
Wahba, S. (1991). “What Determines Workers’ Remittances?” Financial & Development, Vol.28 (4), 41-44.
Word Bank (2008). Global Monitoring Report 2008: MGS & the Environment: Agenda for Inclusive and Sustainable Development, World Bank Washington, D.C.
Yaseen, H., (2012). The Negative and Positive Impact of Remittances on economic Growth in MENA countries. The Journal of International Management Studies, Volume 7 Number 1, April, 2012.
Ahuja, H.L. (2008). Modern Economics, 17th Edition, New Delhi: S. CHAND & Company PVT. LTD.
Azam, M., Khan K.(2011). Workers‟ Remittances and Economic Growth: Evidence from Azerbaijan and Armenia, Global Journal of HUMAN SOCIAL SCIENCE Volume 11 Issue 7 Version 1.0 November 2011, Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 2249-460x & Print ISSN: 0975-587X.
Bayar, Y. (2015). Impact of Remittances on Economic Growth. Economic Insights – Trends and Challenges Vol. IV (3),1-10.
Central Bank of Nigeria (2008). Annual Report and Financial Statement. Retrieved August 15th 2016 from http// www.cenbank.org.
Dumitrescu, E. I., Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic Modeling 29(4), 1450-1460.
Fayissa, B. and Nsiah, C. (2008). “The impact of remittances on economic growth and development in Africa”, Middle Tennessee SU, Department of economics and finance working paper, February, 2008.
Giuliano, P. and Ruiz-Arranz, M. (2005). “Remittances, Financial Development, and Growth,” IMF Working Paper No. 234.
Harrison, A. (2004). “Working Abroad – The Benefits Flowing From Nationals Working in Other Countries,” Round Table on Sustainable Development, OECD.
Imai, K.S., Giha, R., Ali, A. & Kaicker, N. (2011). Remittances, Growth and Poverty: New Evidence from Asian Countries. Research Institute for Economics and Business Administration. Kobe University, Japan.
International Monetary Fund (IMF) (2009). Balance of Payments and International Investment Position Manual – Sixth Edition (BPM6). IMF, Washington D.C., pp. 272–277. Retrieved from www.imf.org/external/pubs/ft/bop/2007/pdf/bpm6.pdf.
Javid, M., Arif, U. and Qayyum, A. (2012). Impact of remittances on economic growth and poverty: Evidence from Pakistan. Academic Research International, Vol. 2, No. 1,.
Jhingan, M.L. (2002). “Macroeconomic Theory”. 10th Edition, New Delhi, Vrinda Publications Ltd.
Levit, P. and Nyberg-Sorenson, N. (2004). Global migration perspectives. The transnational turn in migration studies. Retrieved July 26th 2016 from http://www.geim.org.
Lubambu, K. M.K. (2014). Impact of remittances on developing countries. European parliament directorate- general for external policies. Retrieved 15th July 2016 from www.europarla.europa.eu/activities/committee/studies.do?language=en
Oda, H. (2003). The Impact of Workers‟ Remittances on Economic Growth. Retrieved June, 16th 2016 from http://www.usaid.gov/press/releases/2003
Rather, D. (2004). “Enhancing the Development Effect of Remittance to Developing Countries”, Global Department Finance World Bank , Washington, D.C. Remittances: Guide for Compilers and Users. Washington, DC: IMF. 2010a. Balance of Payments Statistics Yearbook 2010.Washington, DC: IMF.
Siddiqui, T. (2004). „Efficiency of Migrant Workers’ Remittance: The Bangladesh Case. Asian Development Bank.
Siddique, A. Selvanathan, E.A. and Selvanathan, S. (2010). Remittances and Economic Growth: Empirical Evidence from Bagladesh, India and Sri Lanka. Griffiths University Queensland, Discussion Paper 10, 27.
Singh, R. J., Haacker, M., and Lee K. (2009). “Determinants and Macroeconomic Impact of Remittances to Sub-Saharan Africa.” Working Paper 09/216, International Monetary Fund, Washington, DC.
Smith, A. (1776). The Wealth of Nations. New York: Bantam Dell.
Wahba, S. (1991). “What Determines Workers’ Remittances?” Financial & Development, Vol.28 (4), 41-44.
Word Bank (2008). Global Monitoring Report 2008: MGS & the Environment: Agenda for Inclusive and Sustainable Development, World Bank Washington, D.C.
Yaseen, H., (2012). The Negative and Positive Impact of Remittances on economic Growth in MENA countries. The Journal of International Management Studies, Volume 7 Number 1, April, 2012.
Published
2019-06-27
Section
Articles
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