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 |
| _version_ | 1827929542545637376 |
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| author | Dada James Temitope Akinlo Taiwo |
| author_facet | Dada James Temitope Akinlo Taiwo |
| author_sort | Dada James Temitope |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-13T06:24:47Z |
| format | Article |
| id | doaj.art-74281dc3345f4f6a88f8a27e86228fa6 |
| institution | Directory Open Access Journal |
| issn | 0013-3264 1820-7375 |
| language | English |
| last_indexed | 2024-03-13T06:24:47Z |
| publishDate | 2023-01-01 |
| publisher | Faculty of Economics, Belgrade |
| record_format | Article |
| series | Ekonomski Anali |
| spelling | doaj.art-74281dc3345f4f6a88f8a27e86228fa62023-06-09T10:42:01ZengFaculty of Economics, BelgradeEkonomski Anali0013-32641820-73752023-01-016823610513810.2298/EKA2336105D0013-32642336105DRemittances-finance-growth trilogy: Do remittance and financial development complement or substitute each other to affect growth in Nigeria?Dada James Temitope0https://orcid.org/0000-0002-8434-6660Akinlo Taiwo1https://orcid.org/0000-0002-1415-4241Obafemi Awolowo University, Department of Economics, Ile-Ife, NigeriaAdeyemi Federal University of Education, Department of Economics, Ondo, NigeriaThe 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.https://doiserbia.nb.rs/img/doi/0013-3264/2023/0013-32642336105D.pdfremittancesfinancial developmenteconomic growthnigeria |
| spellingShingle | Dada James Temitope Akinlo Taiwo Remittances-finance-growth trilogy: Do remittance and financial development complement or substitute each other to affect growth in Nigeria? Ekonomski Anali remittances financial development economic growth nigeria |
| title | Remittances-finance-growth trilogy: Do remittance and financial development complement or substitute each other to affect growth in Nigeria? |
| title_full | Remittances-finance-growth trilogy: Do remittance and financial development complement or substitute each other to affect growth in Nigeria? |
| title_fullStr | Remittances-finance-growth trilogy: Do remittance and financial development complement or substitute each other to affect growth in Nigeria? |
| title_full_unstemmed | Remittances-finance-growth trilogy: Do remittance and financial development complement or substitute each other to affect growth in Nigeria? |
| title_short | Remittances-finance-growth trilogy: Do remittance and financial development complement or substitute each other to affect growth in Nigeria? |
| title_sort | remittances finance growth trilogy do remittance and financial development complement or substitute each other to affect growth in nigeria |
| topic | remittances financial development economic growth nigeria |
| url | https://doiserbia.nb.rs/img/doi/0013-3264/2023/0013-32642336105D.pdf |
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