Migration, remittance and development in origin countries: evidence from Nigeria

Abstract

Migration (international or local migration) of individuals/workers is viewed as a channel through which workers’ remittances have become a major source of income for developing countries; resources are repatriated from the source country to service foreign nationals or home economy while it creates an internal braindrain between local migrants and likely an increased out-migration of workers/individuals. However, little is still known about their impact on the economic development in the origin countries. This paper analyses whether, and to what extent, these downsides of international migration of workers affects origin countries. Consequently, using a household survey-based and secondary sources dataset our results show that remittances in Nigeria are positively and significantly viable in their contribution to economic growth (proxy by gross domestic product) in some Sub-Saharan African countries and have reduced poverty to some extent.