DO MIGRANT REMITTANCES DRIVE PRIVATE INVESTMENT? EMPIRICAL EVIDENCE FROM NIGERIA
DO MIGRANT REMITTANCES DRIVE PRIVATE INVESTMENT? EMPIRICAL EVIDENCE FROM NIGERIA

Summary/Abstract: The study conducts investigation into how migrant remittance drive private investment in Nigeria spanning from 1980 to 2021. The study adopts flexible accelerator theory as its theoretical framework. The study employs Augmented Dickey-Fuller (ADF) unit root test to test for stationarity of each variable, and the result reveals that there is mixed among the variables. Sequel to the mixed level of stationarity of the variables the study employs ARDL estimation technique to investigate the impact of migrant remittance on private investment. The study found that in the short run migrant remittance and interest rate drive private investment while exchange rate, gross domestic product growth rate, inflation rate and financial deepening crowd-out investment in Nigeria. Whereas in the long run, all the variables drive investment aside financial deepening. Consequently, that policy makers and government should formulate policies for free flow of remittance into the economy without any difficulties, also the study recommends that adequate monetary policy should be formulated to ensure that the financial sector serves its function of enhancing private investment in Nigeria.

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