Modelling the influence of financial inclusion on the remittance growth nexus in Nigeria

Q3 Economics, Econometrics and Finance

Economic Annals Pub Date : 2023-01-01 DOI:10.2298/eka2337137s

J. Ogede, Musa Oduola, O. Yinusa, L. Raimi

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Abstract

In this paper, we explore the nexus between remittances and Nigeria?s economic growth over the period 1996 to 2020 from the perspective of financial inclusion (FI). The fully modified ordinary least square (FMOLS) and Granger (1969) causality methodologies were employed. The findings of the FMOLS show that the increasing flow of remittances can significantly contribute to the growth of the Nigerian economy. Also, the interaction of financial inclusion and remittances has a significant impact on the country?s development. The study concludes that the interaction of remittances with the measures of financial inclusion will lead to economic growth at a faster rate than when there is no interaction with financial inclusion. Using the Granger causality test, the study revealed that the relationship between financial inclusion and economic growth is a unidirectional one. It shows that the impact of financial inclusion on growth is conditional on remittances. Therefore, Nigeria?s authorities need to work to strengthen all existing institutional weaknesses that allow questionable transactions in financial markets and to promote a more inclusive financial sector that will reduce the number of unbanked individuals in the country.

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模拟普惠金融对尼日利亚汇款增长关系的影响

在本文中，我们探讨了汇款与尼日利亚?从普惠金融(FI)的角度分析1996 - 2020年中国经济增长。采用完全修正的普通最小二乘(FMOLS)和Granger(1969)因果关系方法。FMOLS的调查结果表明，汇款流量的增加可以显著促进尼日利亚经济的增长。此外，普惠金融和汇款的相互作用对国家产生了重大影响。年代的发展。研究得出的结论是，汇款与普惠金融措施的相互作用将比不与普惠金融相互作用时更快地促进经济增长。通过格兰杰因果检验，研究发现普惠金融与经济增长的关系是单向的。研究表明，普惠金融对增长的影响取决于汇款。因此,尼日利亚吗?美国当局需要努力加强所有现有的制度弱点，使金融市场上的可疑交易成为可能，并促进更具包容性的金融部门，以减少该国无银行账户的个人数量。

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.