Do Diaspora Remittances Guarantee Food Security in Nigeria?
Journal of Economics, Management and Trade,
The burgeoning remittances into Nigeria and their effect on the economy have received renewed attention in recent times. Literature has suggested the existence of a relationship between remittances and food security. The extent to which this is true for Nigeria is uncertain. Using Vector Error Correction Model (VECM), this study examined the link between remittances and food security using secondary data for the period 1980 to 2018. Findings revealed a robust long and short-run relationship between remittances and food security. In the short-run, a positive and significant relationship was found between remittances and food security in the current period such that a 1 per cent increase in remittances was associated with a 5.08 per cent improvement in food security. In the long-run, a cointegrated relationship was observed as the error correction term depicting this relationship was well-behaved, properly signed and significant indicating that any previous period deviation in long-run equilibrium is corrected in the current period at an adjustment speed of 28.8 per cent. In addition, the Granger test suggests a unidirectional causality running from remittances to food security such that past values of remittances determined food security during the period investigated. Consequent to the findings, the study recommended with a caveat, the design and proper implementation of a diaspora and remittances policy to cater for the welfare of Nigerians in the diaspora to improve remittance receipts and by implication, food security. However, since remittances alone cannot guarantee food security in Nigeria, this study further recommends a holistic and multidimensional approach to address the food security challenge and close the food deficit gap.
- food security
- food securityvector error correction model
- granger causality test
How to Cite
Stark O. Migration in LDCs: Risk, remittances, and the family. Finance and development. 1991;28(4):3941.
Solimano A. Remittances by emigrants, issues and evidence’, World Institute for Development Economics Research (WIDER), Discussion paper no. 2003;89.
Central Bank of Nigeria. Introduction of the CBN’s ‘Naira for dollar scheme’ for diaspora remittances. Circular reference TED/FEM/PUB/FPC/01/003, trade and exchange department; 2021.
PricewaterhouseCoopers (PWC). Nigeria economic outlook, top 10 themes for 2019. Accessed 02 October, 2019.
World Bank. Migration and remittances data. 2019.
Central Bank of Nigeria. Statistical bulletin. 2019;30.
FAO, IFAD, IOM and WFP. The linkages between Migration, agriculture, food security and rural development’. Rome; 2019.
FAO, IFAD, and WFP. The state of food insecurity in the world; 2015.
FAO, IFAD, UNICEF, WFP and WHO. The state of food security and nutrition in the world; 2017.
Mohapatra S, Ratha D. (editors). Remittance markets in Africa, directions in development finance. World Bank, Washington, D.C; 2011.
Crush J, Caesar M. Food remittances and food security: A review. Migration and development. 2018;7(2):180-200.
Regmi M, Paudel K. Food security in a remittance based economy. Food security. 2017;9(4):831-848.
Sharma H. Migration, remittances and food security: A complex relationship. The Development Review. 2012;1(1):40-63.
Lacroix T. Migration, rural development, poverty and food security: A comparative perspective. International migration institute, Amsterdam; 2011.
United nations development programme. Sustainable development goals (SGDs)’, United nations statistics division, development data. New York; 2015.
Johnson GE, Whitelaw WE. Urban-Rural income transfers in Kenya: An estimated-remittances function’, Economic development and cultural change. 1974;22:473-479.
Banerjee B. The probability, size, and uses of remittances from Urban to Rural areas in India’. Journal of Development Economics. 1984;16:293-311.
Stark O, Levhari D. On migration and risk in LDCs. Economic development and cultural change. 1982;(31):191-196.
Lucas R, Stark O. Motivations to remit: Evidence from Botswana. Journal of Political Economy. 1985;93:901-918.
Cox D, Eser Z, Jimenez E. Motives for private transfers over the life cycle: An analytical framework and evidence for Peru. Journal of Development Economics. 1996;55(1):57-80.
Rapoport H, Douguier F. The economics of migrant’s remittances. IZA discussion paper. 2005;153.
Becker G. A treatise on the family. Cambridge, Harvard university press; 1981.
Bouoiyour J. Miftah A. Why do migrants remit? Testing hypothesis for the case of Morocco’, IZA Journal of Migration. 2015:4(2).
Gubert F. Do migrants insure those who stay behind? Evidence from the kayes areas (Western Mali)’, Oxford development studies. 2002;30(3).
Crush J, Caesar M. Cultivating the migration‐food security nexus. International migration. 2017:55(4):10-17.
Crush J. Linking migration, food security and development’. International Migration. 2013;51(5):61–75.
Sulemana I. Bugri E. Quartey P. International remittances and household food security in Sub-Saharan Africa’. Migration and Development. 2019:8(2):264-280.
Mabrouk F. Mekni M. Remittances and food security in African countries. African Development Review. 2018;30(3):252-263.
Choithani C. Understanding the linkages between migration and household food security in India’, Geographical Research. 2017;55(2):192-205.
Regmi M, Paudel K. Impact of remittance on food security in Bangladesh: Food security in a food abundant world’, Frontiers of economics and globalization. 2016;16:145-158.
Babatunde R. Impact of remittances on food security and nutrition on migrant’s household: Evidence from Nigeria. Conference, July 28-August 2, Vancourver, British Columbia; 2018.
Mora-Rivera J, Gameren E. The impact of remittances on food insecurity. Evidence from Mexico’, Centro de estudious economicos, Documentos de trabajo, Numero; 2020.
Kangmennaang J. Luginaah I. Impact of migration and remittances on household welfare among rural household in Northern and Central Malawi. Migration and Development Journal. 2017;7(1).
Regmi M. Paudel K. Mishra A. Impact of remittance on food security in Bangladesh. Selected paper prepared for Southern agricultural economics association annual meeting, Atlanta Georgia; 2015.
Moniruzzaman M. Debt financed migration to consumption smoothing: Tracing the link between migration and food security in Bangladesh. Doctoral dissertation, Laurier university, waterloo; 2016.
Mahapatro S, Bailey A, James K, Hutter I. Remittances and household expenditure patterns in India and selected states. Migration and Development. 2017;6(1):83-101.
Abadi N, Techane A, Girmay T, Maxwell D, Vaitla B. The impact of remittances on household food security: A micro perspective from Tigray, Ethiopia. Wider WP. 2018;40.
Oguniyi A, Mavrotas I, Olagunju K, Fadaare O, Adedoyin R. Governance quality, remittances and their implications for food and nutrition security in Sub-Saharan Africa. World Development. 2020;127.
Zezza A, Carletto C, Davis B, Winters P. Assessing the impact of migration on food and nutrition security’. Food Policy. 2011;36(1):1–6.
World Food Summit. Declaration on world food security. Rome, Italy. 1996;13-17.
Oguntegbe F, Okoruwa O, Kehinde O. Population growth problems and food security in Nigeria. 2018. SSRN Electronic Journal. Retrieved 21 September, 2019.
Onime B. Population, food security and economic growth in Nigeria. International Journal of Economics, Commerce and Management. 2019;7(5):517-536.
Weezel V. Food security and armed conflict: A cross-country analysis. FAO agricultural development economics working paper. 2018;18-03.
Cafiero C. What do we really know about food security? National bureau of economic research, working paper. 2013;18861.
Smith L, Wiesmann D. Is food Insecurity more severe in South Asia or Sub-Saharan African? IFPRI, Washington DC, USA; 2007.
Napoli M. Towards a food insecurity multidimensional index (FIMI). Human development and food security, ROMATRE; 2011.
Food and Agriculture Organization. New approaches to the measurement of food security. Statistics division, FAO, United Nations, AFCAS. 2013;23.
Hejase AJ, Hejase HJ. Research methods: A practical approach for business students (2nd Edition). Philadelphia, PA, USA: Masadir Inc.; 2013.
Engle R, Granger C. Cointegration and error correction: Representation, estimation and testing. Econometrica. 1987;55:251-276.
EViews. Software and data download; 2021. Retrieved 11 June, 2021.
Abstract View: 221 times
PDF Download: 92 times