Remittances, Monetary Policy Transmission Mechanisms and Economic Performance
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Date
2022-02
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Publisher
Journal of Economics and Administrative Sciences
Abstract
This study empirically investigated the impact of migrant remittances through monetary policy transmission
channels on the economic performance of Nigeria. Previous impact and causality analysis show varied
results for migrant remittances on the economic performance of Nigeria. There remains a dearth of studies
investigating the impact of remittances on growth after accounting for its transmission effects on monetary
instruments. Time series data from 1962 to 2020 from the statistical bulletin of the Central Bank of Nigeria
(CBN) and the World Development Indicators were used in the causal research design as well as the
correlation analysis, dynamic general method of moment (GMM) and Johansen co-integration technique.
The research findings indicate that remittance inflows once interacted with exchange rate exerted a positive
and statistically significant impact on the economic performance of Nigeria. Remittance inflow interacted
with inflation rate had a positive yet insignificant impact on the economic performance of Nigeria.
Monetary policy rate maintained a positive sign with significant impact on the economy of Nigeria; while
capital stock investment exerted a negative and insignificant impact on gross domestic product per capita
income of Nigeria. The study finds that the interaction of migrant remittances with monetary policy
instruments is economically important to the per capita growth in Nigeria in the short and long-run. The
study results confirm that the Central Bank of Nigeria (CBN), should continue to facilitate reducing costs
of remittances as well as opportunities for diaspora investments, because of the impacts that remittances
have on economic performance through other monetary variables.
Description
Staff publication
Keywords
Migrant remittances, monetary transmission mechanisms, interaction variables
Citation
Ogbeide, S.O., Olarinde, O.S., & Obadeyi, J.A.(2022). Remittances, Monetary Policy Transmission Mechanisms and Economic Performance. Journal of Economics and Administrative Sciences, 5(1), 16-28.