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Rivers State University, Port Harcourt.
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| Title: | Remittances And Macroeconomic Fluctuation In Nigeria: An Asymmetric Approach |
| Author(s): | NATHAN Emmanuel And OMEJE Danjuma |
| Abstract: | The study examined the impact of remittances on macroeconomic fluctuation (recession and recovery states) of Nigeria economy. The study used annual data covering the period 1985 to 2020 and estimated a Markov time varying transition probability model. Remittance had a positive sign in the recession and recovery states of Nigeria economy, but statistically significant only in the recession state. Further analysis revealed that foreign direct investment (FDI) and foreign portfolio investment (FPI) inflows were negative and statistically significant in the recession state. The study therefore conclude that remittance inflow is procyclical, that is, increased inflows of remittances reinforces recession, while FDI and FPI are countercyclical, implying that, increased inflows reverses recession and set the economy on the path to recovery. The study recommended policy efforts at providing infrastructure, fighting insecurity etc to attract FDI and FPI during recessions to take the economy out of recession. |
| Keywords: | Remittances, Macroeconomic fluctuation, Asymmetric approach foreign direct investment (FDI), foreign |
| Journal: | Journal of Contemporary Research in Economics and Development Studies (JCREDS) |
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