The Responsiveness of Remittances to the Oil Price: The Case of the GCC

George Naufal and Ali Termos

No 4277, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We investigate the responsiveness of remittances from the Gulf Cooperation Council (GCC) countries to the changes in the price of crude oil. Most of the GCC countries rank in the top 20 remitting countries in the world. We find that oil price elasticity of remittances is around 0.4. While most studies have examined the impact of remittances on the real economic activities in the receiving countries, this study emphasises the impact of remittances on the remitting countries. We examine various policy implications with regard to macroeconomic shocks, monetary policy and fiscal policy of the GCC countries.

Keywords: oil price; remittances; elasticity; GCC (search for similar items in EconPapers)
JEL-codes: F24 N15 P22 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2009-07
New Economics Papers: this item is included in nep-ara, nep-ene and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published - published in: OPEC Energy Review, 2009, 33 (3/4), 184-197

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