Remittances and financial integration in ECOWAS

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Date
2024
Authors
Iwegbu, O.
Nnoruga, O.M.
Olunkwa, N.C.
Nwokoma, N.I.
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Publisher
West African Institute for Financial and Economic Management (WAIFEM)
Abstract
This study examines the effect of remittance inows on financial integration within the ECOWAS sub-region. The data employed in analysing the result covers the period 1996–2020. Panel autoregressive distributed lag model was deployed in estimating the models. Some of the findings indicate that there is a positive and significant impact of remittance inflows on financial integration. However, remittance inflows do not support financial integration when measured using interest payments on public debts. Again, trade openness and exchange rate are significant determinants of financial integration. The study recommends that regulatory and infrastructural rigidities which can limit remittance inflow into the region must be addressed by the respective governments and monetary authorities. As such, strategies should focus on developing robust financial infrastructure to accelerate the inflow of remittances into the region.
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Citation
Iwegbu, O., Nnoruga, O.M., Olunkwa, N.C., & Nwokoma, N.I. (2024). Remittances and financial integration in ECOWAS. In D.G. Omotor, & A.G. Johnson (eds.). Dynamics of public debt management and economic development in Africa: Essays in honour of Dr Baba Yusuf Musa (Chp. 18, pp. 488-518). Lagos, Nigeria: West African Institute for Financial and Economic Management (WAIFEM).