Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 323

Article in Press

Savings, Remittances And Economic Growth In Nigeria

Job Pristine Migap

  •  Received: 15 August 2018
  •  Accepted: 30 November 2018
This study will uncover the effect and direction of causality between savings, foreign remittances and economic growth in Nigeria from 1980 to 2017.It will assess the effect of remittances in bridging the resource gap that is a vital for domestic savings to enhance economic growth. Using a single equation multivariate model approach, it employs Engel-Granger cointegration and causality tests to analyze the relationship. Phillips-Perron (PP) test and Kwiatkowski-Phillips-Schmidt-Shin (KPSS) test is utilized to verify the presence and confirmation of unit root .The result indicates that there is bidirectional causality between economic growth and savings signifying the complementary nature of their relationship for sustained development as posited by literature and a unidirectional causality from savings to remittances in line with the altruistic theory of remittances. Government should implement policies that would strengthen the transfers’ channels for inward remittances, as well as encourage households to mediate in channeling savings and remittances to productive investments.

Keywords: Causality. savings. economic growth. remittances. Nigerian economy. Two gap model.