Does Exchange Rate Affect Remittances in Nigeria?
Does Exchange Rate Affect Remittances in Nigeria?
Author(s): Ebenezer OlubiyiSubject(s): Economy, Financial Markets
Published by: EDITURA ASE
Keywords: Remittances; exchange rate; altruism; self-interest;Generalized Method of Moments (GMM);
Summary/Abstract: The size and rate of remittances to Nigeria are remarkable. However, theories do not unanimously pin down the effects of exchange rate on remittances. Employing a simple choice-theoretical model, it was discovered that real exchange rate impacted negatively on remittances. This implies that an expected depreciation of the real exchange rate which signals adverse economic conditions back home dwarfs remittance inflows. Thus, although altruism mostly dictates remittances to Nigeria, self-interest or returns-seeking motive is also important.
Journal: The Review of Finance and Banking
- Issue Year: 7/2015
- Issue No: 1
- Page Range: 31-45
- Page Count: 15
- Language: English