Diaspora Remittances and The Growth of The Nigerian Economy

Yıl 2021, Cilt: 8 Sayı: 2, 170 - 185, 29.12.2021

Adewale Beke , Enemona Ameji , Urah Solomon

https://doi.org/10.30803/adusobed.975567

Öz

This paper assessed the impact of diaspora remittances on the growth of the Nigerian economy from 1986 to 2019. The paper utilizes the Autoregressive Distributed Lag (ARDL) model by using variables of gross national product, diaspora remittance inflows, labor force, financial development, and trade openness. Results of the study have shown that diaspora remittances have a positive and significant impact on economic growth in Nigeria in the short run and long-run, however, its impact on growth was quite low for both periods. To improve the contributions of diaspora remittance, remittances should go beyond just transfer payments and social security to help family members and serve as investments to spur economic growth. Also, increasing labor force participation through job creation, improving working conditions to enhance productivity, and creating favorable financial environment to invest these funds is advocated. Additionally, international trade should be strengthened by shifting production from primary products such as crude oil and agricultural produce to secondary products such as refined petroleum and industrial products by revamping the industrial sector.

Anahtar Kelimeler

Diaspora remittances, Economic growth, Financial development, Labor force, Trade openness

Destekleyen Kurum

Federal University Lokoja

Proje Numarası

TETFUND

Teşekkür

Thanks

İşçi Dövizleri Diasporası ve Nijerya Ekonomisinin Büyümesi

Öz

Bu makale, diaspora havalelerinin 1986'dan 2019'a kadar Nijerya ekonomisinin büyümesi üzerindeki etkisini değerlendirdi. Bu makale, gayri safi milli hasıla, diaspora havalesi girişleri, işgücü, finansal gelişme ve ticaret açıklığı. Çalışmanın sonuçları, diaspora havalelerinin Nijerya'da kısa ve uzun vadede ekonomik büyüme üzerinde olumlu ve önemli bir etkiye sahip olduğunu, ancak büyüme üzerindeki etkisinin her iki dönem için de oldukça düşük olduğunu göstermiştir. Diaspora havalesinin katkılarını iyileştirmek için, havaleler, aile üyelerine yardımcı olmak ve ekonomik büyümeyi teşvik etmek için yatırımlar olarak hizmet etmek için sadece transfer ödemelerinin ve sosyal güvenliğin ötesine geçmelidir. Ayrıca, istihdam yaratarak işgücüne katılımın artırılması, verimliliğin artırılması için çalışma koşullarının iyileştirilmesi ve bu fonlara yatırım yapmak için uygun finansal ortamın yaratılması savunulmaktadır. Ayrıca, sanayi sektörü yenilenerek, üretimin ham petrol ve tarımsal ürünler gibi birincil ürünlerden rafine petrol ve sanayi ürünleri gibi ikincil ürünlere kaydırılarak uluslararası ticaretin güçlendirilmesi gerekmektedir.

Anahtar Kelimeler

Diaspora işçi dövizleri, Ekonomik büyüme, Finansal gelişme, İş gücü, Ticari açıklık

Proje Numarası

TETFUND

Kaynakça

• Adams, R. H., & Page, J. (2003). International migration, remittances and poverty in developing countries. World Bank (Poverty Reduction Group) Policy Research Working Paper, No. 3179.
• Adarkwa, M. A. (2015). Impact of remittances on economic growth: evidence from selected West African countries (Cameroon, Cape Verde, Nigeria and Senegal). African Human Mobility Review, 1(2), 177-200.
• Amugune, C. J. (2018). The effect of diaspora remittances on the economic growth of Kenya [Doctoral dissertation, University of Nairobi]. UoN Dissertations & Theses.
• Anetor, F. O. (2019). Remittance and economic growth nexus in Nigeria: Does financial sector development play a critical role? International Journal of Management, Economics and Social Sciences, 8(2), 116-135.
• Barajas, A., Chami, R., Fullenkamp, C., Gapen, M., & Montiel, P. (2009). Do workers’ remittances promote economic growth? IMF Working Papers, No. WP/09/153.
• Didia, D., Didia, L., & Ayokunle, P. (2018). Accounting for diaspora remittances in the economic development of Sub-Saharan Africa. Journal of Applied Economics and Business Research (JAEBR), 8(2), 109-121.
• Economics Online. (2020). Economic growth. Retrieved November, 10, 2020, from https://www.economicsonline.co.uk/Definitions/Growth.html
• Elebiju, A., & Fatokunbo, G. (2020, May 6). Nigeria remittances: Legal, regulatory and commercial issues in diaspora transactions. Mondaq. https://www.mondaq.com/nigeria/income-tax/929158/remittances-legal-regulatory-and-commercial-issues-in-diaspora-transactions
• European Parliament. (2013). The impact of remittances on developing countries (EXPO/B/DEVE/2013/34). Doi:10.2861/57140
• Fayomi, O., Azuh, D., & Ajayi, L. (2015). The impacts of remittances on Nigeria’s economic growth: A study of Nigerian diasporas in Ghana. Journal of South African Business Research, 2015, 31-43.
• Giles, D. (2013). Autoregressive distributive lag (ARDL). Econometrics Beats: Deva Gule’s blog.
• Hassan, G., M., & Shakur, S. (2017). Nonlinear effects of remittances on per capita GDP growth in Bangladesh. Economies, 5, 25, 1-11.
• Iheke, O. R. (2016). Remittance and the economy: The Nigerian experience (A review). Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development, 16(3), 145-152.
• Kui-Wai L. (2017). Redefining capitalism in global economic development. Cambridge, Massachusetts, United States: Academic Press.
• Loto, M. A., & Alao, A. A. (2016). Remittances and the growth of the Nigerian economy. Eurasian Journal of Business and Economics, 6(2), 210-232.
• Muguna, A. C. W. (2018). South-South migration: The impact of diaspora remittance on the national development of Kenya.
• Narang, D. (2020). Macroeconomic outcomes of remittances on the Indian economy. Sanrachna, Center for Research Innovation, Paper v1, 0111.
• Pesaran, H.M., & Pesaran, B. (1997). Working with Microfit 4.0: Interactive econometric analysis. Oxford University Press.
• Pesaran, H.M., Shin, Y., & Smith, R. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
• Phillips, P.C.B., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrica, 75(2), 335-346.
• PricewaterhouseCoopers. (2019). Strength from abroad: The economic power of Nigeria’s diaspora. https://www.pwc.com%252Fng%252Fen%252Fpdf%252fThe-economicpower-of-nigeria's-diaspora.pdf
• Srinivasan, P., & Kalaivani, M. (2012). Exchange rate volatility and export growth in India: An empirical investigation. Munich Personal RePeC Archive (MPRA), Paper No. 43828.
• United Nations Development Programme. (2020). Remittances (diaspora financing). Retrieved November 4, 2020, from https://www.sdfinance.undp.org/content/sdfinance/en/home/solutions/remittances.html
• Waheed, M., Alam, T., & Ghauri, S.P. (2006). Structural breaks and unit root: Evidence from Pakistani macroeconomic time Series. Munich Personal RePEc Archive, No.1797.
• World Bank (2019, October 16). Data release: Remittances to low- and middle-income countries on track to reach $551 billion in 2019 and $597 billion by 2021. World Bank Blogs. https://blogs.worldbank.org/peoplemove/data-release-remittances-low-and-middle-income-countries-track-reach-551-billion-2019