THE IMPACT OF IMMIGRATION ON EXPORT PERFORMANCE IN NIGERIA
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- NGN 3000
Background of the study
Migration, both internal and international, has significant importance for country economies worldwide.The phenomenon of internal and cross-border migration has significant implications for labour markets in terms of their size, structure, and efficiency. Additionally, it has notable effects on the social and political landscapes, as well as the cultural fabric of the receiving nations. The neo-classical theory of international commerce posits that there is a trade-off between international migration and international trade. However, recent empirical studies have shown that immigrant networks may actually enhance bilateral economic interactions. The positive impact of trade can be attributed to various factors. Firstly, it may be attributed to the transmission of immigrants' preferences for goods from their country of origin. Secondly, it can be attributed to the elimination of informational and cultural barriers between the host and origin countries, as suggested by Alesina, Harnoss, and Rapopor (2016). Additionally, trade can facilitate contract enforcement in weak institutional environments, as highlighted by Artuc, Docquier, Özden, The phenomenon of immigration might potentially lead to a decrease in transaction costs related to commerce and operate as a complementary factor to trade activities. Despite seeing substantial growth in the last decade, Nigerian commerce continues to account for a little share of world exports.The user's text is too short to be rewritten academically. Nigerian products encounter substantial trade barriers, encompassing both formal impediments such as export time and transportation challenges, as well as informal obstacles arising from the country's comparatively fragile legal institutions and limited awareness of international trading prospects in these regions. In recent years, there has been a notable rise in African migration, particularly among Nigerians. This phenomenon prompts speculation on the potential impact of population movements on Nigerian trade barriers, and if such effects may have contributed to the stimulation of African exports (Bahar & Rapoport, 2018). The impact of the Nigerian diaspora on Nigerian exports performance is significantly favourable, surpassing the average effect of migration on exports globally. The observed phenomenon may be partially attributed to the predominance of relatively weaker institutions in Nigeria. This is supported by the finding that migrants tend to contribute more to trade in nations with weaker institutions. Additionally, it has been shown that there is a more pronounced impact in the context of differentiated goods. This implies that migrants also contribute significantly to the reduction of information costs, particularly in relation to differentiated products as opposed to commodities (Bahar, Rapoport, & Turati, 2020). Furthermore, it is observed that the impact of the Nigerian diaspora on intra-African exports is more pronounced when migrants have settled in nations that are physically and ethnically distinct. The findings of this research indicate that migration might potentially contribute to the reduction of trade obstacles that impede Nigerian commerce. Specifically, migration can facilitate the enforcement of contracts, decrease information costs, and mitigate cultural barriers. Therefore, the study investigates the impact of immigration on export performance in Nigeria.
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