PERSPECTIVES ON THE IMPACTS OF REMITTANCES ON ECONOMIC GROWTH IN NIGERIA
Adeyi Emmanuel Ola and Miapwap Kangrot Doras
Volume 7 Issue 1
Abstract
Migrant remittances have been acknowledged to be increasingly important to developing countries even though little incentives seem to have been put in place strengthen them in many countries like Nigeria. This paper set out to investigate the impact of remittances on economic growth in Nigeria using secondary source of data on the time series from 1988 to 2018. The study utilized the techniques of Vector Autoregressive (VAR) and Error Correction Model (ECM) and the results indicates that remittances have a positive and significant impact on economic growth in Nigeria and that there is long run relationship between remittances and economic growth, even as it also reveals that exchange rate and inflation rate are some of the important determinants of remittances in Nigeria. The study however recommends amongst others that remittances inflow should be directed towards investment channels by increasing investment opportunities in the country.
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