EFFECTS OF DIASPORA REMITTANCES ON ECONOMIC DEVELOPMENT: A STUDY OF NIGERIAN PER-CAPITA INCOME

This study examined the effect of diaspora remittances on economic development. It was aimed at determining the effects of diaspora remittances on economic development and the objectives of the study include determining the effect of foreign direct investment, per capita income, and remittance on the human development index. This study covers 20 years spanning from 2002 to 2022. This study was anchored on the Human capital theory. Human development index was used as the dependent variable while Remittances, Foreign direct investment, and Per-capita income as the independent variables. Secondary data were sourced from the Central Bank of Nigeria’s Statistical Bulletin and World Bank data atlas. The Granger causality test was adopted for the empirical analysis. The research revealed that Per-capita income has no significant effect on the Human development index,Diaspora remittances showed the absence of a causal effect on the Human development index, and Foreign direct investment has an insignificant effect on the human development index. Thus, the study concluded that diaspora remittances had no significant effect on the human development index. It was recommended that policymakers should enforce effective monetary and fiscal policies to improve the diaspora remittance channel, aid inflows, and foreign direct investment as a growth mechanism for the human development index