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Examining the asymmetric effects of oil price shocks on remittances inflows: evidence from Nigeria

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  • Anthony Enisan Akinlo

    (Obafemi Awolowo University)

  • Michael Segun Ojo

    (Redeemer’s University)

Abstract

This paper examines the asymmetric impact of oil prices on remittance inflows in Nigeria based on annual data over 1981–2018. The study employs the nonlinear autoregressive distributed lag approach, which allows testing the short- and long-run asymmetric response of remittances inflows to positive and negative innovations in oil prices. The results confirm a long-run relationship between remittance inflows, exchange rate, misery index, gross domestic product per capita, and oil prices. The results show that changes in oil price have an asymmetric effect on remittance inflows in the short run but not in the long run. Moreover, exchange rate appreciation and depreciation have different impact on remittances inflows in both the short and long run. Exchange rate depreciation hurts remittance inflows. GDP per capita harms remittances inflows not only in the short run but also in the long run. Nigerian authorities implement necessary measures to enhance the efficiency of migration process and ensure appropriate exchange rate value.

Suggested Citation

  • Anthony Enisan Akinlo & Michael Segun Ojo, 2021. "Examining the asymmetric effects of oil price shocks on remittances inflows: evidence from Nigeria," SN Business & Economics, Springer, vol. 1(10), pages 1-16, October.
    • Handle: RePEc:spr:snbeco:v:1:y:2021:i:10:d:10.1007_s43546-021-00140-y
    DOI: 10.1007/s43546-021-00140-y
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    Cited by:

    1. Akinlo, Anthony Enisan, 2024. "Oil Price Shocks and Income Inequality in Nigeria: Evidence from Nonlinear ARDL Approach," African Journal of Economic Review, African Journal of Economic Review, vol. 12(1), March.

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    More about this item

    Keywords

    Oil price; Remittance inflows; Asymmetry; Nonlinear ARDL; Nigeria;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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