Financial Development, Remittances Inflows and Economic Growth in Nigeria: A Time Series Analysis
Eric Olabode Olabisi *
Department of Economics, Faculty of Humanities, Social and Management Sciences, Elizade University, Ilara-Mokin, Ondo State, Nigeria.
Sunday Oseiweh Ogbeide
Department of Accounting and Finance, Faculty of Humanities, Social and Management Sciences, Elizade University, Ilara-Mokin, Ondo State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study examines whether financial development promotes remittances inflows and Nigerian economic growth. Using a time-series data for a period of 1985-2017, the Autoregressive Distributed Lag (ARDL) technique was employed. The results suggest that financial development in Nigeria exerted no significant impact on economic growth. It is an indication that financial development is not a significant variable for promoting remittances inflows into Nigeria. However, the study concludes that remittances inflows are a substitute for promoting individual’s financial business opportunities and economic growth. The study therefore recommends that the government should strengthen the Nigeria financial institution, and also institute a financial reform initiative that can enhance financial security as well as ease of accessing remittances inflows.
Keywords: Autoregressive Distributed Lag (ARDL), economic growth, financial development and remittances inflows