Kwara State University
Eunice OLUGANNA
Designation: Lecturer II
Department: Accounting and Finance
| My Publications | ||||||||
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| S/N | Title | Abstract | Authors | Volume Numbers | Publication Type | Publication Date | Link | |
| 1 | Do remittance stimulates business cycle in Nigeria. |
Remittance inflow to Nigeria is large, relatively stable and increasing. But the mainstay of fiscal spending is oil proceeds, a commodity that is prone to external shocks. Evidence abound that when Nigeria is faced with external financial shocks, the economy slides into recession. It will be interesting if remittances can stimulate the economy so that there will not be too much pressure on the government during economic downturn. Employing quarterly data between 2009:q1 and 2019:4 in the context of motives of remitting, this paper investigates the economic stimulant ability of remittances. Employing Hodrick-Prescott filter in the ARDL model, the result indicates that remittance size and intensity stimulates business cycle. However, this will not be immediate. The economic size of the UK and the US are very important driver of remittances. Depreciation of exchange rate and increase in the price levels of urban and rural prompts more remittances. The policy implication from the foregoing is that the authorities can leverage on remittances to ease the pressure of their financial responsibility during external shocks. Meanwhile, the economies of the host countries, particularly the UK must be closely monitored because if the country faces serious economic crisis, it may dampen the countercyclical ability of remittances in Nigeria. Keywords: Autoregressive distributed lags, Exchange rate, Remittances, Business cycle | Ebenezer O, and Oluganna, E. | 55 (4) | Journal of Developing Areas, | 2021-11-29 | https://doi.org/10.1353/jda.2021.0079 | |