Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Effect of Diaspora Remittances on Nigeria’s Per Capita Income and Gross Domestic Product

Nangih, Efeeloo Ph.D, Diepreye Bail

Abstract

The aim of the study was to establish the effect of diaspora remittances on Nigeria’s per capita income and gross domestic product. The study was anchored on the theory of tempered altruism. It adopted the ex post facto research approach. The data used in this study were obtained from Central Bank of Nigeria's Bulletin and the World Bank sources from 2010 to 2023. Data analysis was done using descriptive statistics, correlation and regression models. The results revealed as follows: diaspora remittance has a significant positive effect on per capita income in Nigeria. This is in line with the a priori expectation, implying that an increase in remittances will also enhance per capita income. Further, diaspora remittances showed a significant positive effect on GDP in Nigeria. It was concluded that diaspora remittance is very paramount to Nigeria’s economic development. Based on the findings and conclusion, it was recommended that the Federal Government should provide the enabling environment for diaspora remittances to be channeled properly; since it is a major contributor to the economy.

Keywords

Diaspora remittancesEconomic growthGross Domestic ProductPer capita

References

Adeagbo, M. O (2024). Diaspora Remittances and Human Capital Development in Nigeria. International Journal of Economic Development Research and Investment. 14 (1), 47- 60 Cambridge Advanced Learner’s Dictionary and Thesaurus (2018). Cambridge University Press. http://dictionary.cambridge.org/dictionary/English/ diaspora Retrieved: 28/08/2018. Collins English Dictionary (2018). Harper Collins Publishers. http://www.collinsdictionary.com/ Retrieved: 28/08/2024 Cox, D., Eser, Z. & Jimencz, E. (1998). Motives for private transfers over the life-cycle: An Analytical framework and evidence from Peru. Journal of Development Economics 55, 57-80. De la Briere, B., Benedicte, E., Sadourlet, E, de Janvry, A., & Lambect, S. (2002). The roles of destination gender, and household composition in explaining remittances: an analysis for the Dominican Sierra. Journal of Development Economics 68/2/309 – 328. Dietmar, M. & Adela, S. (2016). The impact of remittance on economic growth: An econometric model. Available online at www.sciencedirect.com. Retrieved: 28/08/2018. Fayissa B. & Nsiah, C. (2010). Can remittances spur economic growth and development? Evidence from Latin America Countries (LACs). Working Paper series March 2010, Department of Economics and Finance, Middle Tennessee State University, Murfreesboro. Granger, C.N.J. and Newbold, P. (1974). Spurious regressions in econometrics. Journal of Econometrics, 2: 111-120 International Monetary Fund (2010).Staff guidance note on the application of the joint bank – fund debt sustainably framework for low – income countries. Prepared by the staff of the IMF and the World Bank, January 22. Kithe, T. (2009). The motivation of remittances senders: Evidence from Eritrean Immigrants in Germany. Institute for World Economics and International Management, University of Bremen, Germany Nr 116. Kumar, R.R., Stauvermann, P.J., Petal, A. & Prasad, S.(2018).The effect of remittances on economic growth in Kyrgyzstan and Macedonia: Accounting for Financial Development. International Social Science Journal (56) 1. Mbutor, O. M. (2010). Can monetary policy enhance remittances for economic growth in Africa? The case of Nigeria. Journal of Economics and International Finance 2(8) 156 – 163. Nigeria in Diaspora Organisation (2017). Vanguard Newspaper Issue of 25/June/2013. Ojapinwa, T.V. & Odekunle, L.A. (2013). Workers' remittance and their effect on the level of investment in Nigeria: An empirical analysis. International Journal of Economics and Finance. 5(4), 89-99 Rapoport, H. & Docquier, F. (2005). The economics of migrants’ remittances. IZA Discussion PaperNo. 1531. Ratha, D. (2007). Worker’s remittances: An important and stable source of external development finance. Global Development Finance, 157 – 172. Rutten, L. & Oramah, O. (2006). Using commoditized revenue flows to leverage access to international finance: With a special focus on migrants remittances and payment flows. A study prepared for secretarial of United Nation Conference on Trade and Development. Simon, M.K. & Goes, J. (2013). Dissertation and scholarly research: Recipes for success. Seattle, WA: Dissertation Success, LLC. http://www.dissertationrecipes.com Accessed: 07/11/2018. Stark, O. & Levhari, D. (1982). On migration and risk in LDCs. Economic Development and Cultural Change 31, 191 – 196. Wanger B. & Aras, O.N. (2022). Human Capital Development in Nigeria: The Role of Diaspora Remittances Human capital development in Nigeria, Journal of Sustainable Business, Economics and Finance, 1(1), 94-111. World Bank (2017), World development indicators (Washington). Available via the Internet: http://devdat.worldbank.org/data/query.com Retrieved: 28/08/2018.

More Articles from WORLD JOURNAL OF FINANCE AND INVESTMENT RESEARCH