Effects of Remittance Inflows on Economic Growth of Nigeria

Abstract

This study investigates the impacts of remittance inflows on the economic growth of Nigeria.  We employed remittance inflows, and some other traditional sources of economic growth, such as Gross Capital Formation, Foreign Direct Investment, openness and foreign exchange rate to evaluate the influence of remittance inflows on economic growth of Nigeria. Co integration and causality tests were deployed to analysis the data collected, the result of our study revealed that there are long run equilibrium relationship among the variables that were employed.  Furthermore, the causality test shows a uni-direction causality from Gross Domestic Product to Remittance Inflows Gross, Capital Formation to Remittances, and Remittance Inflows to Openness.

Keywords: Remittance inflows, Economic growth, Cointegration.