Migrant Remittances, Growth and Poverty Reduction: ARDL- Bounds Test and Granger Causality Approach

Abstract

This study examines the relationship among remittances, growth and poverty reduction in Nigeria. Secondary data from the World Development Indicators was utilized from 1981-2019. ARDL Bounds test and Granger causality techniques were employed in analyzing the objective of the study. Consequently, the major findings in this study could be submitted as follows: GDP per capita has a positive and significant relationship with migrant remittances. Furthermore, economic growth motivates poverty reduction in the country. Hence, it could be concluded that migrant remittances and growth are important economic variables that drive poverty reduction in Nigeria. Moreover, following the emergence of these important findings, these pertinent recommendations are therefore made for the policymakers in Nigeria and Africa by extension, that whenever poverty reduction is the goal of these policymakers, implementation of the policies that would stimulate sporadic inflows of migrant remittances should be embarked upon. Similarly, policies that will ensure double digit growth rate in sustainable manners in the country should be embarked upon by the policymakers.