RESEARCH METHODS IN ECONOMICS

(ECN 344)

DR. M OGUNNIYI

A RESEARCH PROPOSAL ON THE

IMPACT OF XENOPHOBIA ON FOREIGN
REMITTANCES FROM SOUTH AFRICA
TO NIGERIA
 GROUP 2
IMPACT OF XENOPHOBIA ON FOREIGN REMITTANCES FROM SOUTH AFRICA TO
NIGERIA
NO NAME MATRIC NO
1 FATUSIN CHRISTIANAH 160901023
2 OLAJIDE-TAIWO ABAYOMI 160901024
3 OLAONI TOLUWANIMI FLORENCE 160901025
4 OLABISI FUAD OMOGBOLAHAN 160901026
5 SUNMOLA ALAMEEN ADEMOLA 160901027
6 OGUNSAN ALEX AYOMIDE 160901028
7 DABIRI ODUNAYO ABDUL-KHALIQ 160901029
8 OGWO UCHENNA PETER 160901030
9 ADEDEJI AYOMILESI 160901031
10 KUKU AYOMIDE HAMZAT 160901032
11 EJEH EMMANUEL 160901033
12 PETER YEMAYINSE JANET 160901034
13 SHITTU OLAMIDE MARIAM 160901036
14 ADEKANMBI TOLUWALASHE 160901037
15 IGWEONU CHIAMAKA 160901038
16 OLAMILEKAN GANIU SAMUEL 160901039
17 BABATUNDE MUBARAK 160901041
18 SUMMER JEWEL UGOH-UNACHUKWU 160901042
19 OLAYIWOLA DEBORAH BOLUWATIFE 160901043
20 ANITINI OLUWAFUNMILAYO RUTH 160901044
21 IBRAHIM SODIQ OLANIRAN 160901141
INTRODUCTION
The renewed incident of xenophobia which engulfed South Africa and the reprisals which
engulfed Nigeria has dented the image of both countries – Nigeria and South Africa.

Historically, Xenophobia has become a worldwide phenomenon that is been orchestrated by

factors both locally and internationally.

This research aims to examine the effect of xenophobia on the foreign remittances of the
Nigerian economy.

STATEMENT OF PROBLEM
Various forces are at play as contributors fueling the physical and psychological abuse on both
foreigners in South Africa. While most African nations attained political freedom in the post
1060 period, social economic development lagged behind with poverty, unemployment and
inequality on the rise. These challenges are known as the evil triplets and these caused many
Africans to migrate to better off countries like South Africa in search of greener pastures.

EMPIRICAL

Akinola confirmed that South Africa accommodates the largest number of asylum seeker in the
world thus the scramble for job opportunities and scarce resources between South Africans and
non-South Africans did not only fuel tensions but also led to xenophobia and xenophobic attacks
aimed at causing bodily harm. He also argued that this situation was further perpetuated by the
political illiteracy on the part of South Africans with regard to African politics. These incudes the
decisive roles played by other African nations (especially Nigeria i.e. the Mandela tax) in the
liberation of South Africa.

It’s against this background that this research seeks to understand the impact of xenophobia on
remittances from Nigerians living in South Africa and the Nigerian economy using the Granger
Causality Model and a few interviews from distinguished lecturers in the University of Lagos.

JUSTIFICATION

We are conducting this research in order to consider the effect of these xenophobic attacks on the
Nigerian economy and its socio economic effects on Nigeria because for an economy to grow we
have to understand those factors which are lagging.

RESEARCH QUESTIONS

1. Does xenophobia affect the economy?

2. Does xenophobia affect remittances?
3. To what extent does xenophobia affect remittances?
4. To what extent does xenophobia affect net factor income from abroad?
GAP IN LITERATURE

Prof. Akinola A.O (2014)

He presented a summary based on perceived xenophobic attacks which rose from the 2008/2009
economic depression which has led to high spread of jealousy among South Africans against
non-South Africans and has caused physical attacks and fatalities.

He also sourced from an interview that most of the reasons for the attacks could be captured in
the quote “They are taking our business, their businesses are successful because they are
involved in drugs, their stuff is cheap hence people buy from foreign shops” (interview No 10,
workshop, 28 August 2015)

However, the criticisms from his work are the fact that it is outdated and he is of the opinion that
the xenophobic attacks are mostly caused by economic factors.

Musuva (2014)

According to him xenophobia takes place because of crime, poverty and unemployment. The
current attacks were as a result of South Africans feeling that foreigners are taking their jobs
thereby dominating their economy.

Moshood Ishola (2015)

He is of the opinion that South Africans blame foreigners for the high unemployment rate and
that South Africans are angry that foreigners are benefitting from their country through their
small businesses. But however South African mega businesses are flourishing in most parts of
Africa without any hindrance, for example MTN group is a South African multinational mobile
telecommunications company operating in many African countries in which Nigeria has its
biggest markets. MTN Nigeria has generated 37% of the total revenue for the MTN group
worldwide as at 2015. Also DSTV will be no different in terms of where most of its revenue
comes from.

Despite all this it remains shameful that the Nigerian economy doesn’t gain a large chunk of this
earning even though its citizens are the major contributors to the success of these companies.

The criticisms of his work include the fact that the information is outdated and he only gave
specific information on the impact of Xenophobia on the South African economy and not the
Nigerian economy.
DATA ANALYSIS
Hypothesis testing;
Ho: xenophobia doesn’t affect the remittances to the Nigerian economy
H1: xenophobia affects the remittances to the Nigerian economy
We would be testing these using the Granger Causality Model

METHODOLOGY
We would be using the qualitative and quantitative model. Under the quantitative model we
would be using the Granger Causality Model to examine two variables; the number of
xenophobic attacks as the independent variable and the level of foreign remittances as the
dependent variable based on secondary data of the given variables. Under the qualitative we
would be using interviews.

SOURCES OF DATA

 Scholarly articles and international news channels

 Special websites
 Social media platforms

CONCLUSION
Why this research?

 We are trying to find ways to prevent the reoccurrence of xenophobia.

 To find a solution to the menace of xenophobia because of its effect on the Nigerian
economy.
Problems faced

Paucity of data due to the asymmetrical distribution of data, information and statistics in the
Nigerian economy.

We however plan to mitigate this problem by supplementing our quantitative data with the
qualitative data.