IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 8 NO. 2 2023
DOI: https://doi.org/10.56201/ijefm.v8.no2.2023.pg92.103

---

Remittance-Domestic Investment Nexus in Nigeria

Edeh, Charity Nonyelum, Ijemba Onyinye Nwannediuto, & Njeze, Amobi Valerie

---

Abstract

The study examined the impact of remittance on domestic investment in Nigeria for the period 1981-2020, using time series annual data obtained from the Central Bank of Nigeria statistical Bulletin and the World Bank database. The accelerator theory served as the framework of the study, where a linear model which specified investment as a function of remittances, gross domestic, interest rate and private sector credit was formulated to guide the investigation. The result of the unit root test of the time series data using the Augmented Dickey-Fuller unit root test for stationarity indicates that the series were stationary at levels I(0) and first difference I(1). The result of the bound test technique showed evidence of cointegration of the time series data. The result of the Autoregressive Distributed Lagged model shows that remittances have a positive and insignificant impact on domestic investment in the short run and long run. Based on the findings, it is recommended that pro-remittance inflow policies should be put in place by government to encourage investment in Nigeria. Nigerians in diaspora should be encouraged Nigeria government to see reasons why they should invest in their countries of origin

keywords:

remittance, domestic investment, ARDL

---

References:

Abubakar, O. I. & Folawewo, A. (2019). The impact of remittances on household investment in
Nigeria, International Journal of Business and Economic Development, 7 (2), 38-59

Adedayo, A. E., Olusuyi, A. O., Agbolade, G. B., & Ebun, A. F. (2017). Dynamic
impact of remittance on economic growth in Nigeria, Journal of Accounting and
Financial Management, 3 (3), 25-36

DOWNLOAD PDF

---

Back