The mediating role of institutions in the remittance-growth relationship: Evidence from Nigeria

Q3 Economics, Econometrics and Finance

Economic Annals Pub Date : 2020-01-01 DOI:10.2298/eka2027007a

I. Adekunle, T. Williams, O. J. Omokanmi, S. O. Onayemi

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引用次数: 8

Abstract

This study examines the mediating role of institutions in the remittance- growth relationship in Nigeria. We use autoregressive distributed lag (ARDL) estimation to establish the interaction of the variables of interest. The short-run results reveal that remittance inflows positively influence growth, probably due to the immediate injection of financial resources that an increase in remittances brings about. This effect is reinforced by improvements in regulatory quality. In contrast the long-run results reveal that, over time, remittance inflows are negatively related to growth probably due to adverse macroeconomic consequences, to a decrease in work incentives, and a decline in the motivation for technological innovation. However, the adoption of improved institutional environment is found to offset the negative long-run effect of remittances on growth, at least to some extent. Therefore, remittance receiving countries should improve the design and enforcement of laws, regulatory quality, and control over corruption, so that they can make best use of remittance inflows and other sources of external financing needed to augment domestic productivity and growth.

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机构在汇款-增长关系中的中介作用:来自尼日利亚的证据

本研究考察了机构在尼日利亚汇款-增长关系中的中介作用。我们使用自回归分布滞后(ARDL)估计来建立感兴趣变量的相互作用。短期结果表明，汇款流入对增长产生了积极影响，这可能是由于汇款增加带来的财政资源立即注入所致。监管质量的提高加强了这种效果。相反，长期结果表明，随着时间的推移，汇款流入与增长呈负相关，这可能是由于不利的宏观经济后果、工作奖励减少和技术创新动机下降所致。然而，改善制度环境至少在一定程度上抵消了汇款对经济增长的长期负面影响。因此，汇款接收国应改进法律的设计和执行、监管质量和对腐败的控制，以便它们能够最好地利用汇款流入和提高国内生产率和增长所需的其他外部融资来源。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economic Annals Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

0.90

自引率

0.00%

发文量

审稿时长

18 weeks

期刊介绍： Economic Annals is an academic journal that has been published on a quarterly basis since 1955, initially under its Serbian name of Ekonomski anali (EconLit). Since 2006 it has been published exclusively in English. It is published by the Faculty of Economics, University of Belgrade, Serbia. The journal publishes research in all areas of economics. The Editorial Board welcomes contributions that explore economic issues in a comparative perspective with a focus on transition and emerging economies in Europe and around the world. The journal encourages the submission of original unpublished works, not under consideration by other journals or publications. All submitted papers undergo a double blind refereeing process. Authors are expected to follow standard publication procedures [Instructions to Authors], to recognise the values of the international academic community and to respect the journal’s Policy.