International Remittances and GDP Growth in Nigeria


  • Idris Ahmed Sani School of Economics, Finance and Banking, College of Business Universiti Utara Malaysia,Kogi State University, Anyigba
  • Sallahuddin Hassan


remittances, FDI, GMM, financial sector


In developing countries, remittance from citizen working outside their countries contribute in explaining the behaviour of their home country’s economic growth. Nigeria like any other developing nation,international remittances are considered second largest source of finance after FDI. Remittances and GDP growth in Nigeria has been analysed for the period from 1970 to 2014. Using the Generalized method of moments (GMM) to control endogeniety problem and to also handle unobservable effects. The study showed that remittances are positive as well as significant with GDP growth and also plays an active role in explaining the Nigeria’s economic growth. Also, financial sector’s impact on GDP growth is positive and significant as well as trade openness and world growth GDP. The policy recommendation based on this research finding is that, the financial sector should be improve and be encouraged with necessary legal framework and some basic infrastructures to facilitatethe smooth and horizontal transaction of remittances and also for this sector to perform the role of productive investment.


• Adams, R. and Page, J. (2005). Do international migration, remittance reduce poverty in developing countries? World Development, 33, 1645–1669.

• Agarwal, R., Demirtgur-Kunt, A. and Martinez Peria, M. (2010). Do remittance promote financial development? Journal of Development Economics, 10, 16–36.

• Amedu, S. (2010). Global financial market meltdown and the Nigerian stock market crash of 2008. Nigeria Journal of Seurities and Finance, 15, 99–114.

• Antom, K. I. (2010). The impact of nutritional status of children in Ecuador. International Migration Review, 44, 269–299.

• Bank, W. (2011). Migration and remittance facbook 2011. Washington World Bank Reports, 5, 102–134.

• Bank, W. (2013). Global economic prospectus. 8, 12– 36.

• CBN. (2014). Remittance and global fiancing. Statistical Bulletin, 4, 44–67.

• Chami, R., Fullenkamp, C. and Jahjah, S. (2003). Are remittances flow a source of capital for development? 6, 1–21.

• Chami, R., Fullenkamp, C. Gapen, M. (2009). Measuring worker’s remittances: What should be kept in and what should be left out. Mimeo, IMF, 12, 1–23.

• Combes, J. L., Ebeke, C. H., Etoundi, S. M. N., & Yogo, T. U. (2014). Are Remittances and Foreign Aid a Hedge Against Food Price Shocks in Developing Countries? World Development, 54, 81–98.

• Gupta, S., Pattillo, C. and Wagh, S. (2007). Impact of remittance on poverty and financial development in Sub-Sahara Africa (p. wp/07/38).

• IMF. (2005). Two current issues facing developing country: Workers remittance and economic development. World Bank Economic Outlook, 2, 1–23.

• IMF. (2013). Remittance in Africa a boost or a burst? IMF Economic Review, 6, 1–30.

• Irfan, M. (2011). Remittance and poverty linkage in Pakistan: Evidence and some suggetions for further analysis (p. 78).

• Karagoz, K. (2009). Workers remittance and economic growth: Evidence from Turkey. Journal of Yasar University, 4(13), 1891–1908.

• Mazhar, M. and Junaid, A. (2013). Remittances and business cycles: Comparison of south Asian countries. CATT WP, (4).

• Noy, I. and Nualsri, A. (2008). What do Exogenous Shocks Tell Us about Growth Theories ? Nature, 2007(December), 1–33.

• Obadan, M. I. (2010). Exchange rate regime for developing and emerging markets. In Internation conference on central banking, financial stability and growth (pp. 1–21). Lagos, Nigeria.

• Qayyum, A., Junaid, M and Arif, U. (2008). Impact of remittance on econmic growth and poverty. MRPA Paper, 3(22941).

• Raddatz, C. (2007). Are external shocks responsable for the instability of output in low income countries? Journal of Development Economics, 84/1, 155–187.

• Rashid, H. and Ghulam, A. (2014). Worker remittance and GDP growth in Pakistan. International Journal of Economics and Financial Issues, 4(2), 376–381.

• Ratha, D. (2003). Worker’s remittances: An important and stable source of development finance. MPRA Paper, 2, 20–3.

• Russell, S. and Teitlbaum, M. (1992). International migration and international trade. Wold Bank Discussion Paper, (160).

• Schneider, P. (2005). International trade, economic growth and intellectual property rights: A panel data study of developed and developing countries. Journal of Development Economics, 78(2), 529–547.

• Woodruff, C. and zenteno, R. (2007). Migration network and microenterprises in Mexico. Journal of Development Economics, 82, 509–528.

• World Bank. (2012). Global economic prospectus (pp. 1–23).

• Yang, D. (2008). International migration, human capital and enterpreneurship: Evidence from Phillipines migrants and exchange rate shock. The Economic Journal, 118, 591–630.




How to Cite

Sani, I. A., & Hassan, S. (2015). International Remittances and GDP Growth in Nigeria. Asian Journal of Applied Sciences, 3(3). Retrieved from