Suchergebnisse

AbstractStatistics show that remittances inflow to Nigeria grew from US$3,000,000 in 1978 to over US$22 billion in 2017. Theoretically, such a large inflow of foreign currency into an economy may lead to Dutch diseases. This study, therefore, investigated whether the massive inflow of remittances into the economy causes Dutch disease. Given that the model had both I(0) and I(1) variables, ARDL/Bound testing methodology was used with annual data from 1981 to 2016. The ARDL result showed that migrant remittances have a significant positive effect on the real effective exchange rate in Nigeria in the long run. Specifically, a one per cent increase in the inflows of remittances increases the real effective exchange rate of Naira by 0.44 per cent in the long run. This appreciation of the Nigerian Naira relative to other competing nations encourages import and discourages export, leading to the Dutch disease effect.

AbstractThe study analyses how remittances to Nigeria affect the labour supply of recipients using Propensity Score Matching (PSM) and a Log‐Linear regression model, with data from the 2013 Nigerian General Household Survey. The PSM results show that for the entire sample, the difference between the average amount of labour supplied per week by those that receive remittances and the amount they would have supplied without remittances is insignificant. The marginal impact analysis also shows that, ceteris paribus, the average labour supply for all recipients is inelastic to remittances. The results from the sub‐group analysis, however, show that receiving remittances negatively affects the labour supply of the self‐employed in agriculture, teenagers and the elderly. These results led us to the recommendation that policies to increase the inflow of remittances should be encouraged but in tandem with programmes to educate farmers on the benefit of investing remittances received in their farming business.