Diaspora Remittances And Economic Growth Nexus In Nigeria
MGBARINE Anthony Chioma
Institute of International Trade and Development University of Port Harcourt, Nigeria
ROBINSON Monday Olulu
Institute of International Trade and Development University of Port Harcourt, Nigeria
OHALE Lawrence
Institute of International Trade and Development University of Port Harcourt, Nigeria
Keywords: Diaspora, Economic growth, Inflow, Migrant, Outflow, Remittances
Abstract
The study examined diaspora remittances and economic growth in Nigeria from 1980-2020. The objectives of the study were to; examine the effect of migrant remittances inflow and migrant remittances outflow on economic growth in Nigeria. Time series on migrant remittances inflow, migrant remittances outflow and real gross domestic product (RGDP) was collected from World Bank indicators and Central Bank of Nigeria statistical bulletin. The technique of Autoregressive Distributed Lag (ARDL) model was used for the study. But the unit root test of stationarity was used to stabilize the variables before they were subjected to the ARDL. The unit root test result showed that; migrant remittances outflow were stationary at order zero while migrant remittances inflow and RGDP were stationary at order one, which satisfied the requirement for using ARDL approach. The empirical findings showed that; remittance inflow, and outflow have long-run relationship with economic growth. In the short-run, migrant remittent inflow has positive relationship with economic growth. But migrant remittance outflow has negative relationship with real gross domestic product. Based on the findings, the study recommended amongst other that, remittances should be encouraged in order to serve as an alternative way to finance investment and also to overcome liquidity constraints in Nigeria.