Remittances and corruption in Nigeria
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Date
2021-10-30
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Emerald Insight
Abstract
Purpose – In this paper, we investigate the impact of remittances on control of corruption in Nigeria for a
period of 1986–2016.
Design/methodology/approach – The study uses ARDL modeling framework, dynamic OLS estimation,
variance decomposition and impulse response analysis to examine the relationship between the two variables.
Findings – The study finds that remittances significantly improve the control of corruption in Nigeria. We
further examine the robustness test of the results using dynamic OLS estimation, variance decomposition and
impulse response analysis. Our results remain significant and consistent to the earlier one reported in ARDL
framework which supports the extant literature.
Practical implications – Our study suggests that international remittances can be used, through the crossborder
transfer of norms and practices, to significantly impact the socioeconomic progresses of a country by
reducing corruption.
Originality/value – The existing studies on the relationship between corruption and remittances document
conflicting results. In addition, study on corruption - remittances nexus that specifically focuses on any African
country is largely absent despite the fact that most of the countries in the region are recognized as highly
corrupt. This paper provides insights on how remittances can be used as part of tool kits to control corruption
in African nation.
Description
Keywords
Keywords Control of corruption, Remittances, Bound test, Nigeria
Citation
Ajide, F. M., & Olayiwola, J. (2021). Remittances and corruption in Nigeria. Journal of Economics and Development. 23(1), 19-33. Published by Emerald Insight on behalf of The National Economics University, Vietnam. Available online at https://www.emerald.com/insight/publication/issn/1859-0020/vol/23/iss/1