Remittances-finance-growth trilogy: Do remittance and financial development complement or substitute each other to affect growth in Nigeria?
The study examines the absorptive role of financial development in the remittance-growth nexus in Nigeria between 1986-2017. In particular, the shortrun, long-run, and causal links between remittances, financial development, and economic growth in Nigeria are investigated using an autore...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2023-01-01
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| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | https://doiserbia.nb.rs/img/doi/0013-3264/2023/0013-32642336105D.pdf |
| Summary: | The study examines the absorptive role of financial development in the
remittance-growth nexus in Nigeria between 1986-2017. In particular, the
shortrun, long-run, and causal links between remittances, financial
development, and economic growth in Nigeria are investigated using an
autoregressive distributed lag bounds test and vector error correction
Granger causality. The result shows that financial development and
remittances contribute positively to economic growth. Furthermore, findings
from the moderating role suggest that financial development and remittances
serve as substitutes to affect growth in the short run; however, financial
development and remittances perform a complementary role in influencing
economic growth in the long run. In addition, the causality tests indicate a
one-way relationship from economic growth to financial development as well
as bidirectional causality between remittances and financial development in
the short run, while financial development and remittances Granger cause
economic growth in the long run. The outcome of this study suggests there
are time lags in the relationship between remittances, financial
development, and economic growth in Nigeria. The implications of the
findings are discussed. |
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| ISSN: | 0013-3264 1820-7375 |