Affiliation:
1. Department of Accounting Finance and Economics (AFE), Bournemouth University Business School (BUBS) Bournemouth University Poole UK
Abstract
AbstractExisting literature suggests that remittances can help households in developing countries cope with post‐shock consumption. Focusing on Nigeria, where remittance receipts reached $25B in 2018 with increasing incidences of shocks, this study puts this claim to the test by categorising households into two: the group that suffered the most severe shock types and the group that suffered less severe shock types. Data is sourced from the World Bank and linearised regression results indicate that remittances benefit households that experienced less severe shocks than households that experienced the most severe shocks in their post‐shock consumption. Establishing a discriminatory financial market in favours of shock‐affected households is desirable to aid them in coping with post‐shock consumption.
Subject
Development,Geography, Planning and Development