Open AccessFinancial Development, Remittances Inflows and Economic Growth in Nigeria: A Time Series Analysis
Author(s) -
Eric Olabode Olabisi,
Sunday Oseiweh Ogbeide
Publication year - 2020
Publication title -
south asian journal of social studies and economics
Language(s) - English
Resource type - Journals
ISSN - 2581-821X
DOI - 10.9734/sajsse/2020/v7i430198
Subject(s) - distributed lag , economics , government (linguistics) , financial institution , finance , developing country , financial system , business , economic growth , linguistics , philosophy , econometrics
This study examines whether financial development promotes remittances inflows and Nigerian economic growth. Using a time-series data for a period of 1985-2017, the Autoregressive Distributed Lag (ARDL) technique was employed. The results suggest that financial development in Nigeria exerted no significant impact on economic growth. It is an indication that financial development is not a significant variable for promoting remittances inflows into Nigeria. However, the study concludes that remittances inflows are a substitute for promoting individual’s financial business opportunities and economic growth. The study therefore recommends that the government should strengthen the Nigeria financial institution, and also institute a financial reform initiative that can enhance financial security as well as ease of accessing remittances inflows.