INTERNATIONAL REMITTANCES, FINANCIAL DEEPENING AND ECONOMIC GROWTH IN NIGERIA (1985-2016)

Ben Akuonye Uzoh (PhD), Athanasius C. Nwachukwu, Kelechi P. Uzoma

Abstract


In the recent past, remittances have grown rapidly to form a significant component of foreign inflows to Nigeria. This study therefore sought to establish the impact of International remittances and financial deepening on the economic growth of Nigeria (1985-2016). The paper found a positive and statistically significant relationship between remittances and financial deepening in Nigeria. Moreover, the coefficient on the interaction coefficient between remittances and financial sector development was found to be positive and statistically significant. This result suggests that remittances can complement the allocation of capital by credit markets to private investment activities in Nigeria.


Keywords


International remittances, Financial deepening, Economic growth

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