The Impact of International Remittances on the Nigerian Economy

The study investigated the impact of international remittances on the Nigerian economy. The recent global surge in remittance flows and the twin consequences of migration and remittances on economic development have become contemporary topical issues. Thus the need to obtain evidence based information to drive policy formulation on the impact of remittances on the Nigerian economy. Following the behavioural pattern of the variables, we adopted Autoregressive Distributed Lagged model (ARDL) due to Pesaran and Shin [21] in the study. The result of the Auto Regressive Distributed Lagged (ARDL) model showed that international remittance inflow has positive and significant impact on the Nigerian economy. It further showed that there is a long run relationship between international remittances and the Nigerian economy. The ADF test suggested that the series in the model are random walk processes in their level form. The CUSUM and CUSUMSQ tests showed evidence of long run stability of the parameters of the model.