ARDL Analysis of Remittance and Per Capita Growth Nexus in Oil Dependent Economy: The Nigeria’s Experience

Mathew Ekundayo Rotimi (), Mishelle Doorasamy (), Udi Joshua, Grace Gift Rotimi (), Confort Omolayo Rotimi, Gabriel Samuel (), Gbenga Adeyemi (), Ayodele Solomon Alemayo and Alfred Kimea ()
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Mathew Ekundayo Rotimi: Department of Economics, Federal University Lokoja, Kogi State, Nigeria
Mishelle Doorasamy: School of Accounting, Economics and Finance, College of Law and Management Studies, University of KwaZulu Natal, Durban, South Africa
Udi Joshua: Department of Economics, Federal University Lokoja, Kogi State, Nigeria
Grace Gift Rotimi: Department of Business Administration, Prince Abubakar University, Anyigba, Nigeria
Confort Omolayo Rotimi: Department of Economics, Federal University Lokoja, Kogi State, Nigeria
Gabriel Samuel: Department of Accounting, Ibrahim Babangida University, Lapai, Niger State, Nigeria
Gbenga Adeyemi: Wesley University, Ondo, ondo State, Nigeria
Ayodele Solomon Alemayo: College of Education (Technical), Gbeleko, Kabba, Kogi State, Nigeria
Alfred Kimea: Institute of Tax Administration, Tanzania

International Journal of Business and Economic Sciences Applied Research (IJBESAR), 2022, vol. 15, issue 3, 38-51

Abstract: Purpose: Remittance is essential to economic wellbeing. Realising this fact, this study examined, within the optimist theoretical framework, whether international remittances significantly impact per capita economic growth in Nigeria. Design/methodology/approach: Employing annual time series data spanning 1980-2020, the study adopted the Pesaran, Shin, and Smith ARDL bounds estimating model to examine the type of relationships between remittances and Nigeria’s per capita growth. Finding: The study reveals a statistically significant positive nexus in the long-run and short-run among the variables. Specifically, it found that higher remittances inflow enhances per capita growth both in long-run and short-run in Nigeria. Furthermore, the study found that remittances are sources of external financing and eventually, it is a means to economic growth and also may help to fill fiscal deficit gap. Research limitations/implications: This study recommends that government should, through sound policy option, encourage remittances influx. This could be realised by creating viable relationship among international communities that largely account for remittance inflow into Nigeria. It further suggests a prudent and optimal management of remittances inflow through the appropriate monetary authority. This may include formulating policy that will ease remittance inflow and remove unnecessary barriers to inflow of remittances. Originality/value: The study contributes to literature by examining whether international remittances within the optimist theoretical framework significantly impact per capita economic growth (PCEG) in Nigeria.

Keywords: Remittances; Per Capita; ARDL; Growth; Oil Dependent; Nigeria (search for similar items in EconPapers)
JEL-codes: C22 F24 F43 O47 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:tei:journl:v:15:y:2022:i:3:p:38-51

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