Thesis Abstract

Abstract
This research examines the relationship between remittance net flows and economic growth in Nigeria. Remittances are a significant source of external finance for many developing countries, including Nigeria, and they have the potential to impact economic growth positively. The study utilizes data on remittance net flows and economic indicators in Nigeria over a specific period to analyze the relationship between these variables. The findings suggest that remittance net flows play a crucial role in supporting economic growth in Nigeria. The research employs statistical analysis to investigate the impact of remittances on key economic factors such as GDP growth, investment, and consumption. The results indicate a positive correlation between remittance inflows and economic growth, suggesting that remittances contribute to boosting overall economic performance in Nigeria. Moreover, the study delves into the channels through which remittances influence economic growth in Nigeria. It explores how remittances affect household consumption patterns, investment behavior, and poverty alleviation in the country. By examining these channels, the research provides valuable insights into the mechanisms through which remittance inflows contribute to economic development in Nigeria. Furthermore, the research investigates the potential challenges associated with remittances and their impact on economic growth. It analyzes issues such as remittance volatility, exchange rate fluctuations, and the dependency of recipient households on remittance income. By identifying these challenges, the study offers recommendations for policymakers to maximize the positive effects of remittances on economic growth while mitigating potential risks. Overall, the findings of this research contribute to the existing literature on the relationship between remittance net flows and economic growth in Nigeria. By highlighting the positive impact of remittances on economic development and identifying key channels through which remittances influence growth, the study provides valuable insights for policymakers, researchers, and other stakeholders interested in understanding the dynamics of remittance flows in Nigeria. The research underscores the importance of remittances as a crucial driver of economic growth in Nigeria and emphasizes the need for effective policies to harness the full potential of remittance inflows for sustainable development in the country.

Thesis Overview

This study investigated the impact of remittance netflow on per capita growth and also examined the transmission of structural shocks from remittance netflows to economic capita growth in Nigeria The impulse responses and variance decomposition computed from the VAR estimates are used to ascertain the reaction of economic capita growth to remittance net-flow and dynamic effect of shocks on the endogenous variables: remittance net-flow[REM], exchange rate[EXC], exchange regime dummy[EXR], inflation[INF], foreign direct investments[FDI]. The result rof the Two Stage Least Square (2sls) showed that the independent variables in the models explained the dependent variable to a reasonable extent. Remittance net-flow and exchange rate regime dummy has significant impact on economic capita growth in Nigeria. The impulse response result showed that the shocks transmitted by REM,EXC,INF and FDI increased economic growth per capita, except shocks from EXR dummy which were mostly negative in the periods. The result from forecast error variance decomposition showed that the predominant sources of variation in economic growth were from exchange rate regime, remittance netflow and foreign direct investment. The paper, therefore, recommend among others, the removal of unnecessary restrictions in the movements especially when it involves the movement of her nationals to places where most of the remittance inflows comes from.