Investigating the Effects of Remittance Inflow and Tourism on Trade in Nigeria

The importance of trade in stimulating overall production of goods and services cannot be overemphasized. The tourism sector and remittance inflow have been found to be relevant factors in explaining the dynamics of trade in Nigeria. To this end, the focus of this research is to investigate the effects of tourism and remittance inflow on trade in Nigeria. The present research is different from the existing studies in two ways. First, this research employed ordinary least squares technique for the period 1981--2021. Second, our research adopted personal remittances and percentage of GDP as a measure of remittance inflow and trade respectively. The research revealed that tourism and remittance inflow are positive and have a significant impact on trade in Nigeria. This study suggests that tourism and remittance inflow offer important channels in encouraging trade. Hence, the policy recommendations from this research are based on our findings.