The Impact of Net Migration on Agricultural Output and Foreign Direct Investment in Nigeria
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Abstract
The spatial movement of an educated and skilled labour force from one geographical unit to another is probable due to the mobility characteristic of labour; however, studies have expounded numerous benefits and drawbacks of such moves, especially international ones. To this end, this study investigates the influence of net migration on agricultural output and FDI inflows in Nigeria. Using the Autoregressive Distributed lag model (ARDL) on quarterly data from the Central Bank of Nigeria Statistical bulletin and Macrotrends website for the period 2010 to 2021; the results reveal that in the short-run, a one-lag change in net migration, one period change in agricultural output and FDI are statistically significant at 5% level of significance. Furthermore, in both the short and long run, the impact of the explanatory variables on net migration are the same, with FDI having a negative influence on net migration while agricultural output has a positive impact. As supported by other indications, the negative relationship between FDI and net migration may be as a result of a low inflow of earnings from migrants. This paper, therefore, suggests amongst others that government should encourage the inflow of FDI by improving financial services and ensuring proper documentation of earnings.
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