THE CASE OF REMITTANCES INFLOW AND CAPITAL MARKET SUSTAINABILITY IN NIGERIA
Owing to the continuous increase in the volume of remittances inflow to Nigeria and the seeming synergy between capital market and economic growth, this study examines the role of remittances in fostering sustainability of the Nigeria capital market for the period 1981 to 2020. The study used Auto-R...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Lucian Blaga University of Sibiu
2022-12-01
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| Series: | Management of Sustainable Development |
| Subjects: | |
| Online Access: | https://msdjournal.org/wp-content/uploads/vol14issue2-7.pdf |
| _version_ | 1797960394772316160 |
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| author | IZEVBIGIE Norense John OGBEIDE Frank Iyekoretin |
| author_facet | IZEVBIGIE Norense John OGBEIDE Frank Iyekoretin |
| author_sort | IZEVBIGIE Norense John |
| collection | DOAJ |
| description | Owing to the continuous increase in the volume of remittances inflow to Nigeria and the seeming synergy between capital market and economic growth, this study examines the role of remittances in fostering sustainability of the Nigeria capital market for the period 1981 to 2020. The study used Auto-Regressive Distributed Lag (ARDL) modeling approach to co-integration analysis and based on relevant theory, the model was estimated. Estimates showed that remittances significantly and positively impact capital market in the long run. The result also shows that the capital market adjusts speedily to the tune of 64 percent towards convergence in any displacement. Other diagnostics analyses conducted, such as the causality test, affirmed the existence of unidirectional causality running from remittances to the capital market. CUSUM and CUSUMQ tests attest to the stability of the model, which makes it amenable for policy prediction. The findings bring the policy implications and recommendations to the fore. |
| first_indexed | 2024-04-11T00:45:20Z |
| format | Article |
| id | doaj.art-0cf109acaf2e4fee8c5bfb794ef5057b |
| institution | Directory Open Access Journal |
| issn | 2066-9380 2247-0220 |
| language | English |
| last_indexed | 2024-04-11T00:45:20Z |
| publishDate | 2022-12-01 |
| publisher | Lucian Blaga University of Sibiu |
| record_format | Article |
| series | Management of Sustainable Development |
| spelling | doaj.art-0cf109acaf2e4fee8c5bfb794ef5057b2023-01-05T16:32:03ZengLucian Blaga University of SibiuManagement of Sustainable Development2066-93802247-02202022-12-011423845https://doi.org/10.54989/msd-2022-00151THE CASE OF REMITTANCES INFLOW AND CAPITAL MARKET SUSTAINABILITY IN NIGERIAIZEVBIGIE Norense John0OGBEIDE Frank Iyekoretin1Department of Economics, University of Benin, NigeriaDepartment of Research, Policy International Relations, Nigeria Deposit Insurance Corporation (NDIC), Abuja, NigeriaOwing to the continuous increase in the volume of remittances inflow to Nigeria and the seeming synergy between capital market and economic growth, this study examines the role of remittances in fostering sustainability of the Nigeria capital market for the period 1981 to 2020. The study used Auto-Regressive Distributed Lag (ARDL) modeling approach to co-integration analysis and based on relevant theory, the model was estimated. Estimates showed that remittances significantly and positively impact capital market in the long run. The result also shows that the capital market adjusts speedily to the tune of 64 percent towards convergence in any displacement. Other diagnostics analyses conducted, such as the causality test, affirmed the existence of unidirectional causality running from remittances to the capital market. CUSUM and CUSUMQ tests attest to the stability of the model, which makes it amenable for policy prediction. The findings bring the policy implications and recommendations to the fore.https://msdjournal.org/wp-content/uploads/vol14issue2-7.pdfremittances, capital market, time series, nigeria |
| spellingShingle | IZEVBIGIE Norense John OGBEIDE Frank Iyekoretin THE CASE OF REMITTANCES INFLOW AND CAPITAL MARKET SUSTAINABILITY IN NIGERIA Management of Sustainable Development remittances, capital market, time series, nigeria |
| title | THE CASE OF REMITTANCES INFLOW AND CAPITAL MARKET SUSTAINABILITY IN NIGERIA |
| title_full | THE CASE OF REMITTANCES INFLOW AND CAPITAL MARKET SUSTAINABILITY IN NIGERIA |
| title_fullStr | THE CASE OF REMITTANCES INFLOW AND CAPITAL MARKET SUSTAINABILITY IN NIGERIA |
| title_full_unstemmed | THE CASE OF REMITTANCES INFLOW AND CAPITAL MARKET SUSTAINABILITY IN NIGERIA |
| title_short | THE CASE OF REMITTANCES INFLOW AND CAPITAL MARKET SUSTAINABILITY IN NIGERIA |
| title_sort | case of remittances inflow and capital market sustainability in nigeria |
| topic | remittances, capital market, time series, nigeria |
| url | https://msdjournal.org/wp-content/uploads/vol14issue2-7.pdf |
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