Remittances and Inclusive Growth Nexus in Nigeria: Does Health- Oriented Official Development Assistance Matter?
Keywords:
Remittance; Official Development Assistance; Volatility; GrowthAbstract
For the past few decades, remittances, as a veritable source of foreign capital flow, have impacted the economies of many less developed countries through various channels as recorded in extant literature. However, these flows have been characterized by wide fluctuations occasioned largely by economic downturns migrants host countries with attendant consequences on recipient countries. Thus, this study seeks to investigate the impact of such volatilities in remittances on inclusive growth within the Nigerian context, using the Fully Modified Ordinary Least Square (FMOLS) for the period 2000 to 2018. The result shows that remittance-led economic growth hypothesis was not confirmed, as fluctuations in remittances inflow has negative impact on economic hypothesis as the health-oriented official development assistance impacted positively on economic growth. The study therefore recommends the implementation of relevant policies aimed at mitigating the volatilities in remittances inflow as well as improving on the administration and management of such health aid.
References
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Anetor, F.O. (2019). Remittance and economic growth nexus in Nigeria: Does financial sector development play a critical role? International Journal of Management, Economics and Social Sciences, 8 (2), 116-135. http://dx.doi.org/10.32327.
Azam, J.P. &Gubert, F. (2005). Migrant’s remittances and the household in Africa: A review of evidence Journal of African Economics, 15, 426-462.
Barajas, A., Chami, R., Fullenkamp, C., Gapen, M. &Montiel, P. (2009). Do workers remittances promote economic growth.International Monetary Fund Working Paper.WP09/153.
Bodomo, A. (2013). African diaspora remittances are better than World Economics 14 (4), 21-29.
Bollerslev, T. (1986).Generalized autoregressie conditional heteroskedasticity (GARCH).Journal of Econometrics 31 (3), 307-327. DOI: https://doi.org/10.1016/0304-4076 (86) 90063-1.
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De, S., Islamaj, E, Kose, A. &Yousefi, S.R. (2016). Remittances over the business cycle: Theory and evidence. CAMA Working Papers 2016-13, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
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Fayissa, B. &Nsiah, C. (2008).The impact of remittances on economic growth and development in Africa.Middle Tennesse State University, Murfreesboro, Department of Economics and Finance Working Paper Series.
Feiler, G. (1987). Scope and some effects of remittances of Egyptian migrants workers in the Arab oil-producing countries: 1973-1984. Asian and African Studies, 21:305-325.
Gini, A. (2013). The role of remittances on economic growth: An empirical investigation of 12 CEE countries. International Business and Economic Research Journal 12 (2), 193-204.
Glytsos, N.P. (2005). The contribution of remittances to growth: A dynamic approach and empirical analysis. Journal of Economic Studies, 32 (6), 468-496.
Granger, C.W.J. &Nwbold, P. (1977).Spurious regression in Econometrics.Journal of Econometrics, 2 (2), 111-120.
Igbinedion, S.O. (2019). Oil price volatility and infrastructural growth: Evidence from an oil-dependent economy. Oradea Journal of Business and Economics 4 (1), 17-28.
Kaasschieter, J. (2014). Remittances, economic growth, and the role of institutions and government policies (Master Thesis). Erasmus School Economics, Erasmus University Rotterdam.
Looney, R.E. (1990). Macroeconomic impacts of worker remittances on Arab World Labour exporting countries. International Migration, 28 (1): 25-45. https://doi.org/10.1111/j.1468-2435.
Loto, M.A &Alao, A.A. (2016).Remittances and the Nigerian economy. Ethiopian Journal of Business and Economics 6(2), 209-232. https://dx,doi.org/10.4314/ejeb.v6i2.4.
Lucas, R.E.B., & Stark, O. (1985). Motivations to remit: Evidence from Botswana. Journal of Political Economy, 93, 901-918.
Maddala, G.S. & Wu, S. (1999). A comparative study of unit root test with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61, 631-652. Doi:https://doi.org/10.1111/1468-0084.0610s1631.
Meyer, D. &Shera, A. (2016). The impact of remittances on economic growth: An econometric model Economia, 18 (2), 147-155.
Mishra, P. & Newhouse, D. (2009). Does health aid matter? Journal of Health Economics, 28(4): 855-872. Doi.10.1016/j.j/heateco.2009.05.004.
Negeria, K.G. &Halemariam, D. (2016).Effect of health development assistance on health status in sub-Saharan Africa. Risk management and healthcare policy 9:33-42. Doi.10.2147/RMHP.S101343.
Nunnenkamp, P. &Ohler, H. (2011). Aid allocation through official and private channels: Need, merit, and self-interest as motives of German donors. World Development 39 (3), 308-323.
Nyamongo, E.M., Misati, R.N., Kipyegon, L. &Ndirangu, L. (2012).Remittances, financial development and economic growth in Africa. Journal of Economics and Business, 64 (3), 240 – 260.
Ogundipe, M.A &Lawal, N.A. (2011).Health expenditure and Nigerian economic growth.European Journal of Economics, Finance and Administrative Science, 30: 125-129.
Olusuyi, A.E., Adedeyi, O.A., Giwa, B.A and Ebun, A.F. (2017). Dynamic impact of remittances on economic growth in Nigeria: Journal of Accounting and Financial Management 3 (3), 26-36.
Organization of economic co-operation and development (OECD) (2006).International migrant remittances and their role in development (Part III).International migration outlook, pp.139.
Oshota, S.O. &Badejo, A.A. (2015). Impact of remittances on economic growth in Nigeria: Further Evidence Economics Bulletin 35 (1), 247-258.
Phillips, P.C.B. & Hansen, B.E. (1990).Statistical inference in instrumental variables regression with 1 (1) processes. The Review of Economic Studies, 57 (1), 99-125. Doi:https://doi.org/10.2307/2297545.
Piabuo, S.M. &Tieguhong, J.C. (2017). Health expenditure and economic growth – a review of the literature and analysis between the economic community of Central Africa States (CEMAC) and selected Africa countries.Health Economics Review 7, 23 https://doi.org/10.1186/513561-017-0159-1.
Quah, D. (1994). Exploiting cross-section variation for unit root inference in dynamic data. Economic Letters, 44 (1-2), 9-19.
Raghupathi, V. &Raghupathi, W. (2020). Health expenditure and economic performance: Insights from the United States data. Frontiers in Public Health. Doi:10.3389/fpubh.2020.00156.
Rao, B.B. & Hassan, G.M. (2011). A panel data analysis of he growth effects of remittances. Economic Modeling, 28, 701-709.
Rapport, H. &Docquier, F. (2005). The economics of migrants remittances IZA discussion paper No. 1531. Retrieved from http://hp.iza.org/dp1531.pdf.
Sefa, A.C., Siew, L.Y. & Mehmet, U. (2015). Effects of government education and health expenditures on economic growth: A meta analysis Greenwich Papers in Policy Economy No. GPERC 21.
Snigh, R., Lee, K. &Haacker, M. (2009).Determinants and macroeconomic impact of remittances in sub-Saharan Africa.IMF Working Paper No.09/216.Retrieved from:https://www.imf.org/en/publication/wp/issues/2016/12/31.
Solimano, A. (2003). Workers’ remittances to the Andean region: Mechanisms, costs, and development impact. Multilateral Investment Fund – IDB conferences, Remittances and Development, Quito, Ecuador.
Stark, O. (1991). The migration of labour Blackwell, Cambridge and Oxford, United Kingdom.
Sutradhar, S.R. (2020). The impact of remittances on economic growth in Bangladesh, India, Pakistan and Sri Lanka. International Journal of Economic Policy Studies 14, 275-295.
Williamson, C.R. (2008). Foreign aid and human development: The impact of foreign aid to the health sector. Southern Economic Journal 75(1): 188-207.
World Bank (2006).The development impact of workers’ remittances in Latin America.Vol. 11.Detailed findings.The World Bank Group, Washington, D.C.
World Bank (2020).World development indicators.
Aggarwal, R. &Spatafora, N. (2005).Remittances, determinants and impact.Mimeo.International monetary fund, Washington, D.C.
Ahmad, A. (2015). Workers’ remittances and economic growth: Evidence from Jordan European Scientific Journal, 11 (25), 40-54.
Anetor, F.O. (2019). Remittance and economic growth nexus in Nigeria: Does financial sector development play a critical role? International Journal of Management, Economics and Social Sciences, 8 (2), 116-135. http://dx.doi.org/10.32327.
Azam, J.P. &Gubert, F. (2005). Migrant’s remittances and the household in Africa: A review of evidence Journal of African Economics, 15, 426-462.
Barajas, A., Chami, R., Fullenkamp, C., Gapen, M. &Montiel, P. (2009). Do workers remittances promote economic growth.International Monetary Fund Working Paper.WP09/153.
Bodomo, A. (2013). African diaspora remittances are better than World Economics 14 (4), 21-29.
Bollerslev, T. (1986).Generalized autoregressie conditional heteroskedasticity (GARCH).Journal of Econometrics 31 (3), 307-327. DOI: https://doi.org/10.1016/0304-4076 (86) 90063-1.
Chami, R., Barajas, A; Cosimano, T., Fullenkamp, C; Gapen, M., &Montiel, P. (2008).Macroeconomic consequences of remittances (IMF Occasional Paper No. 259).Retrieved from http://www.inif.org/external/pubs/ft/op/259/op259.pdf.
De, S., Islamaj, E, Kose, A. &Yousefi, S.R. (2016). Remittances over the business cycle: Theory and evidence. CAMA Working Papers 2016-13, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
Easterly, W. (2002). How did heavily indebted poor countries become heavily indebted? Reviewing two decades of debt relief.World Development 30 (10), 1677-1696.
Fayissa, B. &Nsiah, C. (2008).The impact of remittances on economic growth and development in Africa.Middle Tennesse State University, Murfreesboro, Department of Economics and Finance Working Paper Series.
Feiler, G. (1987). Scope and some effects of remittances of Egyptian migrants workers in the Arab oil-producing countries: 1973-1984. Asian and African Studies, 21:305-325.
Gini, A. (2013). The role of remittances on economic growth: An empirical investigation of 12 CEE countries. International Business and Economic Research Journal 12 (2), 193-204.
Glytsos, N.P. (2005). The contribution of remittances to growth: A dynamic approach and empirical analysis. Journal of Economic Studies, 32 (6), 468-496.
Granger, C.W.J. &Nwbold, P. (1977).Spurious regression in Econometrics.Journal of Econometrics, 2 (2), 111-120.
Igbinedion, S.O. (2019). Oil price volatility and infrastructural growth: Evidence from an oil-dependent economy. Oradea Journal of Business and Economics 4 (1), 17-28.
Kaasschieter, J. (2014). Remittances, economic growth, and the role of institutions and government policies (Master Thesis). Erasmus School Economics, Erasmus University Rotterdam.
Looney, R.E. (1990). Macroeconomic impacts of worker remittances on Arab World Labour exporting countries. International Migration, 28 (1): 25-45. https://doi.org/10.1111/j.1468-2435.
Loto, M.A &Alao, A.A. (2016).Remittances and the Nigerian economy. Ethiopian Journal of Business and Economics 6(2), 209-232. https://dx,doi.org/10.4314/ejeb.v6i2.4.
Lucas, R.E.B., & Stark, O. (1985). Motivations to remit: Evidence from Botswana. Journal of Political Economy, 93, 901-918.
Maddala, G.S. & Wu, S. (1999). A comparative study of unit root test with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61, 631-652. Doi:https://doi.org/10.1111/1468-0084.0610s1631.
Meyer, D. &Shera, A. (2016). The impact of remittances on economic growth: An econometric model Economia, 18 (2), 147-155.
Mishra, P. & Newhouse, D. (2009). Does health aid matter? Journal of Health Economics, 28(4): 855-872. Doi.10.1016/j.j/heateco.2009.05.004.
Negeria, K.G. &Halemariam, D. (2016).Effect of health development assistance on health status in sub-Saharan Africa. Risk management and healthcare policy 9:33-42. Doi.10.2147/RMHP.S101343.
Nunnenkamp, P. &Ohler, H. (2011). Aid allocation through official and private channels: Need, merit, and self-interest as motives of German donors. World Development 39 (3), 308-323.
Nyamongo, E.M., Misati, R.N., Kipyegon, L. &Ndirangu, L. (2012).Remittances, financial development and economic growth in Africa. Journal of Economics and Business, 64 (3), 240 – 260.
Ogundipe, M.A &Lawal, N.A. (2011).Health expenditure and Nigerian economic growth.European Journal of Economics, Finance and Administrative Science, 30: 125-129.
Olusuyi, A.E., Adedeyi, O.A., Giwa, B.A and Ebun, A.F. (2017). Dynamic impact of remittances on economic growth in Nigeria: Journal of Accounting and Financial Management 3 (3), 26-36.
Organization of economic co-operation and development (OECD) (2006).International migrant remittances and their role in development (Part III).International migration outlook, pp.139.
Oshota, S.O. &Badejo, A.A. (2015). Impact of remittances on economic growth in Nigeria: Further Evidence Economics Bulletin 35 (1), 247-258.
Phillips, P.C.B. & Hansen, B.E. (1990).Statistical inference in instrumental variables regression with 1 (1) processes. The Review of Economic Studies, 57 (1), 99-125. Doi:https://doi.org/10.2307/2297545.
Piabuo, S.M. &Tieguhong, J.C. (2017). Health expenditure and economic growth – a review of the literature and analysis between the economic community of Central Africa States (CEMAC) and selected Africa countries.Health Economics Review 7, 23 https://doi.org/10.1186/513561-017-0159-1.
Quah, D. (1994). Exploiting cross-section variation for unit root inference in dynamic data. Economic Letters, 44 (1-2), 9-19.
Raghupathi, V. &Raghupathi, W. (2020). Health expenditure and economic performance: Insights from the United States data. Frontiers in Public Health. Doi:10.3389/fpubh.2020.00156.
Rao, B.B. & Hassan, G.M. (2011). A panel data analysis of he growth effects of remittances. Economic Modeling, 28, 701-709.
Rapport, H. &Docquier, F. (2005). The economics of migrants remittances IZA discussion paper No. 1531. Retrieved from http://hp.iza.org/dp1531.pdf.
Sefa, A.C., Siew, L.Y. & Mehmet, U. (2015). Effects of government education and health expenditures on economic growth: A meta analysis Greenwich Papers in Policy Economy No. GPERC 21.
Snigh, R., Lee, K. &Haacker, M. (2009).Determinants and macroeconomic impact of remittances in sub-Saharan Africa.IMF Working Paper No.09/216.Retrieved from:https://www.imf.org/en/publication/wp/issues/2016/12/31.
Solimano, A. (2003). Workers’ remittances to the Andean region: Mechanisms, costs, and development impact. Multilateral Investment Fund – IDB conferences, Remittances and Development, Quito, Ecuador.
Stark, O. (1991). The migration of labour Blackwell, Cambridge and Oxford, United Kingdom.
Sutradhar, S.R. (2020). The impact of remittances on economic growth in Bangladesh, India, Pakistan and Sri Lanka. International Journal of Economic Policy Studies 14, 275-295.
Williamson, C.R. (2008). Foreign aid and human development: The impact of foreign aid to the health sector. Southern Economic Journal 75(1): 188-207.
World Bank (2006).The development impact of workers’ remittances in Latin America.Vol. 11.Detailed findings.The World Bank Group, Washington, D.C.
World Bank (2020).World development indicators.
Published
2020-10-08
How to Cite
Igbinedion, S. O. (2020). Remittances and Inclusive Growth Nexus in Nigeria: Does Health- Oriented Official Development Assistance Matter? Array. Acta Universitatis Danubius. Œconomica, 16(6). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/587
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Business Administration and Business Economics
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