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Remittances and corruption in Nigeria

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Abstract

Purpose – In this paper, we investigate the impact of remittances on control of corruption in Nigeria for a period of 1986–2016. Design/methodology/approach – The study uses ARDL modeling framework, dynamic OLS estimation, variance decomposition and impulse response analysis to examine the relationship between the two variables. Findings – The study finds that remittances significantly improve the control of corruption in Nigeria. We further examine the robustness test of the results using dynamic OLS estimation, variance decomposition and impulse response analysis. Our results remain significant and consistent to the earlier one reported in ARDL framework which supports the extant literature. Practical implications – Our study suggests that international remittances can be used, through the crossborder transfer of norms and practices, to significantly impact the socioeconomic progresses of a country by reducing corruption. Originality/value – The existing studies on the relationship between corruption and remittances document conflicting results. In addition, study on corruption - remittances nexus that specifically focuses on any African country is largely absent despite the fact that most of the countries in the region are recognized as highly corrupt. This paper provides insights on how remittances can be used as part of tool kits to control corruption in African nation.

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  • M. Ajide, Folorunsho & A. Olayiwola, John, 2020. "Remittances and corruption in Nigeria," Working Papers 2632, Department of Economics, University of Ilorin.
    • Handle: RePEc:ris:decilo:2632
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    Cited by:

    1. Akanbi, Sa’ad Babatunde & Yusuf, Abdulfatai Adekunle, 2024. "Governance Quality and Remittances in Nigeria: An Empirical Investigation," African Journal of Economic Review, African Journal of Economic Review, vol. 12(01), March.
    2. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    3. Rajesh Barik & Sanjaya Kumar Lenka, 2023. "Does financial inclusion control corruption in upper-middle and lower-middle income countries?," Asia-Pacific Journal of Regional Science, Springer, vol. 7(1), pages 69-92, March.

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