Revisiting the Effects of Workers’ Remittances on Economic Development in Nigeria
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Date
2015-12-18
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Economic and Social Thought
Abstract
Poverty in Nigeria continues unabated despite huge inflow of remittances. Our result supports the argument that remittances can improve economic growth but can also worsen overall wellbeing. Reasons for this are, first, remittances beneficiaries in Nigeria are concentrated in the middle income class with high propensity to consume. Second, due to high propensity to consume, consumption triggers good prices in such a way as to worsen the purchasing power of the poor. Third, institutions are weak and the poor do not benefit from weak institution. Thus good quality institutions should be encouraged while ostentatious spending should be discouraged.
Description
Keywords
Remittances, Economic development, Financial institutions, Governance institution
Citation
Olubiyi, E., & Olarinde, O. S. (2015). Revisiting the Effects of Workers’ Remittances on Economic Development in Nigeria. Journal of Economic and Social Thought, 2(4), 281-299.