IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i3p69-76.html
   My bibliography  Save this article

Analysis of the Major Determinants of Remittances to Nigeria: 1990 – 2019

Author

Listed:
  • Dr Victor O. Okoye

    (School of Financial Studies, Department of Banking and Finance, Federal Polytechnic Oko Anambra State, Nigeria)

  • Kenechukwu J. Nwisienyi

    (School of Financial Studies, Department of Banking and Finance, Federal Polytechnic Oko Anambra State, Nigeria)

Abstract

The study investigated the major determinants of remittances to Nigeria from 1990 to 2019. The study adopted the least square method for this purpose. A dummy variable was introduced in the model to represent the effect of the COVID-19 pandemic. The result showed that inflation and real effective exchange rate are statistically insignificant and so have no effect on remittances. The parameter for the COVID-19 pandemic also came out insignificant in the study. This shows that the pandemic hasn’t really affected the host countries as at 2019. Broad money supply and unemployment rate were statistically significant with remittances with coefficients of 0.675 and -1.377 respectively. The result showed that, within the period under study, broad money supply and unemployment rate were major determinants of remittance inflows to Nigeria. The study recommends, amongst other things, that more research on the subject matter should be done to determine the extent of influence of the COVID-19 pandemic on remittances as the pandemic is still ravaging the world.

Suggested Citation

  • Dr Victor O. Okoye & Kenechukwu J. Nwisienyi, 2022. "Analysis of the Major Determinants of Remittances to Nigeria: 1990 – 2019," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(3), pages 69-76, March.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:3:p:69-76
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-3/69-76.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/analysis-of-the-major-determinants-of-remittances-to-nigeria-1990-2019/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stark, Oded & Levhari, David, 1982. "On Migration and Risk in LDCs," Economic Development and Cultural Change, University of Chicago Press, vol. 31(1), pages 191-196, October.
    2. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," The World Bank Economic Review, World Bank, vol. 21(2), pages 219-248, May.
    3. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
    4. John Chiwuzulum Odozi & Timothy Taiwo Awoyemi & Bolarin Titus Omonona, 2010. "Household poverty and inequality: the implication of migrants' remittances in Nigeria," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 13(2), pages 191-199.
    5. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    6. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    7. John Chiwuzulum Odozi & Timothy Taiwo Awoyemi & Bolarin Titus Omonona, 2010. "Household poverty and inequality: the implication of migrants’ remittances in Nigeria," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(2), pages 191-199.
    8. Mr. Adolfo Barajas & Mr. Ralph Chami & Mr. Christian H Ebeke & Mr. Sampawende J Tapsoba, 2012. "Workers’ Remittances: An Overlooked Channel of International Business Cycle Transmission?," IMF Working Papers 2012/251, International Monetary Fund.
    9. Gertrud Schrieder & Beatrice Knerr, 2000. "Labour Migration as a Social Security Mechanism for Smallholder Households in Sub-Saharan Africa: The Case of Cameroon," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 223-236.
    10. Freund, Caroline & Spatafora, Nikola, 2008. "Remittances, transaction costs, and informality," Journal of Development Economics, Elsevier, vol. 86(2), pages 356-366, June.
    11. repec:aer:wpaper:415 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthieu Delpierre & Bertrand Verheyden, 2014. "Remittances, savings and return migration under uncertainty," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-43, December.
    2. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    3. Gascón, Patricia & Larramona, Gemma & Salvador, Manuel, 2023. "The impact of digitalisation on remittances. Evidence from El Salvador," Telecommunications Policy, Elsevier, vol. 47(4).
    4. Giulia Bettin & Andrea F. Presbitero & Nikola L. Spatafora, 2017. "Remittances and Vulnerability in Developing Countries," The World Bank Economic Review, World Bank, vol. 31(1), pages 1-23.
    5. Bang, James T. & Mitra, Aniruddha & Wunnava, Phanindra V., 2018. "Hollowing Out the Middle? Remittances and Income Inequality in Nigeria," IZA Discussion Papers 11438, Institute of Labor Economics (IZA).
    6. Tineke Fokkema & Eralba Cela & Elena Ambrosetti, 2013. "Giving from the Heart or from the Ego? Motives behind Remittances of the Second Generation in Europe," International Migration Review, Wiley Blackwell, vol. 47(3), pages 539-572, September.
    7. Robert E.B. Lucas, 2007. "Migration and rural development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 99-122.
    8. Mariapia Mendola, 2004. "Migration and Technological Change in Rural Households: Complements or Substitutes?," Development Working Papers 195, Centro Studi Luca d'Agliano, University of Milano.
    9. repec:dau:papers:123456789/5559 is not listed on IDEAS
    10. Giulia Bettin & Riccardo Lucchetti, 2016. "Steady streams and sudden bursts: persistence patterns in remittance decisions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 263-292, January.
    11. Ben Page & Claire Mercer, 2012. "Why do people do stuff? Reconceptualizing remittance behaviour in diaspora-development research and policy," Progress in Development Studies, , vol. 12(1), pages 1-18, January.
    12. Abla Safir, 2009. "Who leaves, who moves in? The impact of positive and negative income shocks on migration in Senegal," Working Papers halshs-00585955, HAL.
    13. Alessio Ciarlone, 2023. "Remittances in times of crisis: evidence from Italian corridors," Temi di discussione (Economic working papers) 1402, Bank of Italy, Economic Research and International Relations Area.
    14. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 13092.
    15. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Endogeneity and sample selection in a model for remittances," Journal of Development Economics, Elsevier, vol. 99(2), pages 370-384.
    16. Patrick GUILLAUMONT & Maëlan LE GOFF, 2010. "Aid and remittances: their stabilizing impact compared," Working Papers P12, FERDI.
    17. Manuela NGABA, 2021. "How does mobile money affect the use of informal remittance channels in Sub-Saharan Africa?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 53, pages 123-146.
    18. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
    19. McKenzie, David J., 2006. "A profile of the world's young developing country migrants," Policy Research Working Paper Series 4021, The World Bank.
    20. Mazzucato, Valentina, 2009. "Informal Insurance Arrangements in Ghanaian Migrants' Transnational Networks: The Role of Reverse Remittances and Geographic Proximity," World Development, Elsevier, vol. 37(6), pages 1105-1115, June.
    21. Coulibaly, Issiaka & Dembélé, Moustapha, 2024. "Impacts of remittances from internal and international migrants on poverty and inequality in Mali," International Economics, Elsevier, vol. 177(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:3:p:69-76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.