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Revisiting the Effects of Workers’ Remittances on Economic Development in Nigeria

Author

Listed:
  • Ebenezer OLUBIYI
  • Omolola Smaria OLARINDE

    (Federal University of Agriculture, Nigeria.)

Abstract

Poverty in Nigeria continues unabated despite huge inflow of remittances. Our result supports the argument that remittances can improve economic growth but can also worsen overall wellbeing. Reasons for this are, first, remittances beneficiaries in Nigeria are concentrated in the middle income class with high propensity to consume. Second, due to high propensity to consume, consumption triggers good prices in such a way as to worsen the purchasing power of the poor. Third, institutions are weak and the poor do not benefit from weak institution. Thus good quality institutions should be encouraged while ostentatious spending should be discouraged.

Suggested Citation

  • Ebenezer OLUBIYI & Omolola Smaria OLARINDE, 2015. "Revisiting the Effects of Workers’ Remittances on Economic Development in Nigeria," Journal of Economic and Social Thought, KSP Journals, vol. 2(4), pages 281-299, December.
    • Handle: RePEc:ksp:journ3:v:2:y:2015:i:4:p:281-299
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Remittances; economic development; financial institutions; governance institution.;
    All these keywords.

    JEL classification:

    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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