Effect of foreign capital inflow on private sector credits: Evidence from Nigeria

Africa has underdeveloped stock markets that have failed to meet the continent’s capital needs, such as rapid economic growth. This research analyzes the key drivers of stock market development in Africa from a macroeconomic perspective. The study examines several macroeconomic variables, including credit to the private sector, foreign direct investment, external reserves, money supply, external trade, per capita GDP, inflation, and lending rate to explain stock market development in Africa. The study builds a panel data consisting of eight African countries from 1994 to 2018 and applies the pooled mean group estimation technique. The analysis shows that in the long run, credit to the private sector, external reserves, and inflation are the most important factors that influence stock market development, while in the short run, income and trade openness are significant in explaining stock market development in Africa. The study recommends that policies to develop African stock markets should center on developing the private sector through access to credit, increased per capita income, and effective foreign reserve management to boost local and foreign investors’ confidence.

Proper understanding and monitoring of household savings are crucial to effective macroeconomic policies targeted at balanced and sustainable economic growth. Remittances, as a financial flow of foreign capital, can create a vital part of private savings. This paper is aimed at identifying whether remittances contribute to household savings in the Baltics along with other macroeconomic variables in a post-crisis period, during which the relative smoothing and convergence of economic development of the Baltic countries after the sharp financial distress in 2009 can be observed. The following methods of panel data regression analysis were employed: fixed effects and OLS. The results of the econometric analysis based on both fixed effects and OLS methods reveal that remittances are an essential driver of savings in the Baltics in the long run. Savings in the Baltics are not significantly influenced in the short term by sharp economic fluctuations, but are dependent on demographic factors and foreign capital, which can bring instability in economic development and financial flows of the region.

Acknowledgment
This research was funded by Vega research project no. 1/0037/20: “New challenges and solutions for employment growth in changing socio-economic conditions”, and VEGA research project no. 1/0287/19 “Integration of immigrants in EU countries from the point of view of migration policies”.

This study examines the environmental effects of remittances in the five largest remittance-receiving countries (India, Mexico, China, the Philippines, and Pakistan) using panel data from 1990 to 2022 sourced from the World Development Indicators. The study employed a quantitative and analytical research design. Remittances are a critical component of economic stability in these countries, yet their impact on carbon emissions and environmental sustainability remains underexplored. The study utilized a dynamic ordinary least squares (DOLS) method to analyze study variables. Unit root and cointegration tests were performed to assess long-run relationships. A dynamic ordinary least squares (DOLS) (pooled estimation) results revealed that GDP per capita and trade openness have significant positive influences on CO₂ emissions. On the contrary, urban population has significant negative influences on CO₂ emissions. In contrast, remittances show no notable effect on CO2 emissions. Furthermore, the results show significant long-run cointegration among the variables, with GDP per capita, trade openness, and urban population identified as major drivers of CO2 emissions. These findings indicate that economic growth, trade liberalization, and demographic expansion are key drivers of environmental degradation, while the direct environmental impact of remittances appears minimal. The study recommends policymakers prioritize environmentally sustainable investments to align remittance-driven economic growth with global climate goals.