Remittances-Output Nexus: Evidence from Nigeria
Abstract
This paper examines remittances–growth nexus for Nigeria by applying cointegration and Granger causality analysis. The data set used is annual time series observations for the period 1977 – 2016. Four possible hypotheses were examined: i) remittances inflow cause growth, ii) growth cause remittances inflow, iii) there is a bi-directional causality between the two variables and iv) both variables are causality independent. Granger causality test result shows that remittance lead growth in the short-run, but there is no long-run relationship between the variables.
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