Research Department, Central Bank of Nigeria.
Workers' remittances, International migration, Financial development, Structural dynamic model, Loan portfolio, Deposit money bank, Foreign exchange inflow.
This study examined the direction and magnitude of remittances effect on .financial development in Nigeria. Using DMB deposit, credit, loan and liquidity to proxy for .financial development, and adopting a structural dynamic model, we found that workers' remittances show a sign of positive effect on demand deposit, positive and significant effect on liquidity and positive and significant effect on DMB credit and loan. This implies that workers' remittances in Nigeria are important drivers of financial deepening. Thus, effort at making saving attractive and reducing parallel market premium will unarguably raise the proportion of banked remittances and improve financial development.
Olubiyi, E. A. (2009). remittances and financial sector performance: the Nigerian experience. Economic and Financial Review, 47(3), 45â€“88.