International Remittance Inflows and Import Spending in Nigeria

Gbenga Sanusi and Oderinde L. Oladele ()
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Oderinde L. Oladele: Department of Economics, Faculty of Social and Management Sciences, Anchor University, Lagos, Nigeria

Financial Sciences. Nauki o Finansach, 2020, vol. 25, issue 2-3, 55-79

Abstract: This study examined the historical trends of remittances and import spending in Nigeria to determine the possible aftermaths of COVID-19 pandemic. Time series data for the period 1977-2019 was used in a VAR model. Result indicates that a unit shock on remittances accounts for about 28% variation in import demand in the second period. Migrant’s remittances and GDP per capita show a weak endogenous relationship. Remittances tend to be stable and not affected by the exchange rate. Thus, import demand may not reduce significantly due to fall in remittances as a consequence of COVID-19. Therefore, improved industrial expansion in the production of goods and services are essential in curtailing aggregate import demand.

Keywords: international remittance; migrants; import spending; VAR model; Nigeria (search for similar items in EconPapers)
JEL-codes: B22 F10 F22 F24 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:finsci:v:25:y:2020:i:2-3:p:55-79:n:2

DOI: 10.15611/fins.2020.2.04

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