IMPACT OF EXPATRIATES ON THE GROWTH OF NIGERIAN ECONOMY

Admin/ June 27, 2019/ Journal of Business and Social science/ 0 comments

IMPACT OF EXPATRIATES ON THE GROWTH OF NIGERIAN ECONOMY


ADEOSUN, Theophilus Oluyemi

 

Department of Economics, University of Lagos, Lagos State, Nigeria

e-mail: oluyemiadeosun@gmail.com

Abstract

Migration of people is a global phenomenon and always of interest to policy makers, academic and government. In recent times the inflow of other nationals to Africa and Nigeria in particular has been on an increase. While many studies focus on impact of Nigerian professionals in diaspora and remittances few have focused on Expatriates impact on Nigeria. This research therefore considered the impact of expatriates on the growth of the Nigerian Economy which has received little attention. Time series data were employed by the study from World Development Indicators (2016) between 1986-2016. The research conducted unit root test and co-integration method to ascertain the fixed and extended correlation among the variables the unit root test revealed foreign direct investment and payment outflow (substituted for expatriates) and real gross domestic product (substituted to advance the economy), were fixed at level and co-integration test revealed a long-term correlation between both variables. The research used the Error correction technique to examine the long run correlation between the variables. The outcome of the observation derived from the Error Correction technique, showed foreign investment as a significant contributor to the advancement of the economy (0.1700), while outflow remittance places an adverse effect on advancement of the economy (-0.1826). Granger causality test showed no relationship between foreign investment, outflow remittances and advancement of the economy. Overall the model is significant at 5% with 79% variation explained by the variables. The research proposed that the Federal Government of Nigeria comes up with policies focused on providing enabling business environment, fair taxation policy and encourage the transaction of economic activities and investment. These will enable expatriates to invest their funds internally rather than remitting them to their places of origin, and as well aid the creation of new businesses which will no doubt improve the advancement of the economy. The population and labour in the country should be given due attention as they contribute positively to the economy.

 

Keywords: Expatriates, Growth, Labour, Migration, Nigeria, Remittances

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