ISSN – PRINT:2756-4495 | ONLINE: 2756-4487
Volume 05, Issue 01 – 2025
Ezebaraba Chike MichaelA Monday Olulu RobinsonB Ezaal OkowaC
A-C Department of Economics, University of Port Harcourt
This study investigated the effects of diaspora remittances and private sector investment on urban poverty rates in Nigeria over the period from 1980 to 2022. Utilizing data sourced from the Central Bank of Nigeria (CBN, 2023), the National Bureau of Statistics (NBS, 2022), and the World Development Index (WDI, 2020), the research employed a variety of econometric methods to analyze the relationships between these variables. These included the Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests to assess stationarity, the Bound test for co-integration to examine long-term relationships, and the Autoregressive Distributed Lag (ARDL) regression approach to capture both short-term and long-term dynamics. The results revealed that while both remittances and private sector investment had a short-term impact on reducing urban poverty, their effects were not statistically significant in the long run. This suggests that while these factors may offer temporary relief to households in urban areas, they do not provide sustained poverty alleviation over extended periods. In light of these findings, the study proposes several policy recommendations aimed at maximizing the potential of remittances and private investment for poverty reduction: The study recommends improving the infrastructure and efficiency of remittance transfer systems to reduce transaction costs and enhance the overall flow of funds. Lowering the costs associated with sending remittances would increase the financial support households receive, thereby providing more immediate relief to urban families and helping to alleviate poverty in the short term. The research also advocates for the implementation of policies aimed at attracting and sustaining private sector investment in urban areas. Addressing structural issues such as inadequate infrastructure, inefficiencies, and corruption is crucial to creating a more conducive environment for investment. Policymakers could incentivize private sector growth by offering tax incentives, strengthening property rights, and streamlining regulations. These measures could stimulate job creation, foster business growth, and contribute to long-term poverty reduction.
Key words: Diaspora Remittances, Poverty. Investment, Inflation
Volume 01, Issue 02
Volume 01, Issue 01