Augustine C. Osigwe
|REMITTANCES INFLOWS AND MONETARY POLICY IN NIGERIA
|Augustine C. Osigwe|
|Abstract. This study examined the relationship and causality between remittances inflows and monetary policy aggregates, interest rate, and the domestic price level in Nigeria. The Johansen co-integration and the Granger causality tests techniques were employed. The co-integration test results showed evidence of long run relationship among the variables. The causality test results revealed a unidirectional causality running from money supply (LM2) to remittances (LREM) only at lag one. Unidirectional causality run from interest rate (INT) to LREM, occurring from lag one to lag three. There was no evidence of causality in any direction between inflation rate (INF) and LREM.
|Key words: Remittance Inflows, Monetary Policy.
|. Adenutsi, De. E. and Ahortor R.K. (2008) Remittances, Exchange Rate, and Monetary Policy in Ghana, West African Journal of Monetary and Economic Integration, Vol. 8, No 2, 1-42.
. Ball C., Lopez C. and Reyes J. (2012) Remittances, Inflation and Exchange Rate Regimes in Small Open Economies, MPRA Paper No. 39852.
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