International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss

Workers’ Remittances – Economic Growth Nexus: Evidence from Nigeria, Using An Error Correction Methodology
Emmanuel Uzodinma Ukeje, Michael Emeka Obiechina

The paper investigates the empirical impact of the workers’ remittances on economic growth in Nigeria. Using a time series data, from 1970-2010 in an error correction methodology (ECM), the long-run static model indicates that workers’ remittances is significant and has positive impacts on economic growth. Furthermore, the short-run dynamic model revealed that the lagged value of workers’ remittances is significant and impacts positively on economic growth. The coefficient of the error correction term (ECT) in the short-run dynamic model is statistically significant and appropriately signed. Consequently, the paper recommends the need to provide adequate infrastructure for attracting more remittances into the economy through formal financial sector channel as well as measures encouraging the recipients to channel such into productive sector or through domestic savings that would boost investment and economic growth, rather than enmeshed in non-productive activities.

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