EMBAR

Author:
Ebierinyo Ayebaemi Akararaand, Adedoyin Oluwatoyin Omidiji
Department of Economics,Faculty of Social Sciences, Niger Delta University, Bayelsa State, Nigeria.

DOI: doi.org/10.58924/rjhss.v5.iss1.p28

Published Date: 28-Jan, 2026

Keywords: Remittances, Economic Development, Spatial Analysis, Nigeria, Geographically Weighted Regression

Abstract:
This study investigated the spatial dynamics of remittances and their impacts on economic development in the source region across Nigerian states, with a focus on identifying regional disparities and the factors that moderate remittance effectiveness. Using panel data for 36 states from 2005 to 2023, the study employed exploratory spatial data analysis (ESDA), panel regression models, spatial econometric techniques (Spatial Lag and Spatial Error Models), augmented regressions with interaction terms, and Geographically Weighted Regression (GWR) to capture spatial heterogeneity. Data were sourced from the Central Bank of Nigeria, National Bureau of Statistics, and other official reports.Results revealed that remittance inflows are highly concentrated in the southern regions, particularly the South West and South East, with northern states receiving lower inflows. Remittances significantly enhance regional economic development, and the impact is strengthened by higher financial development, better infrastructure, and improved education. Spatial analyses confirmed the presence of spillover effects and substantial regional heterogeneity in remittance effectiveness. The study concluded that remittances are a critical driver of development, but their benefits are unevenly distributed across Nigeria. It recommends targeted policies to improve regional infrastructure, financial systems, and human capital, particularly in Northern states, while leveraging diaspora networks and inter-regional linkages to maximize the developmental impact of remittances.

References: