Examining the linkage between Migrant Remittances, Entrepreneurship Development and Covid -19 in Nigeria

Abstract

This study examines the linkages between International migrant remittances and entrepreneurship development in Nigeria. The study then goes on to evaluate the implication of Covid 19 on Migrants remittance inflow in Nigeria. First using data from the World Bank African development Indicators, the study employs a Vector Autoregressive (VAR) approach to trace the linkages and
complementarities of entrepreneurship development to changes in remittance inflow. The study however finds a weak link between remittances and entrepreneurship development in Nigeria. In response to innovations in Personal remittances, there was a small negative effect on New business density (NBDEN) in the very short run, but this quickly becomes positive and persist through out the forecast period. This positive response is however not significantly different from zero. The response of number of self-employed to changes in migrant remittances is negative and permanent. This negative response is insignificant for the forecast horizon. On the implication of Covid 19 on Migrants remittances and its consequences for entrepreneurship development. The study finds that Covid 19 led to a fall in migrant remittances inflow. The study recommends that government should ease inflow controls as well as reduce transaction fees on remittances, so as to further strengthen the impact of remittance in Nigeria.