Novel real remittance outflow indicator and its dynamic relationship with macroeconomic indicators in GCC

Ammar Shaibani and Chung-Khain Wye

Studies in Economics and Econometrics, 2024, vol. 48, issue 4, 347-364

Abstract: This study introduces a new remittance outflow indicator, the Real Remittance Indicator (RRI), which accounts for inflation and transaction costs. It examines the dynamics of real and nominal remittance outflows in GCC countries, emphasising the need for accurate economic analysis. Using a t-test and a panel ARDL model with dynamic fixed effects, the study analyzes the relationship between remittance outflows and macroeconomic indicators. Key findings show a significant positive correlation between RRI and GDP, and a negative correlation with Foreign Direct Investment (FDI). Unit root tests indicate RRI and NRI become stationary after first differencing. The panel ARDL results highlight a positive long-term impact of GDP on RRI and a negative impact of FDI. The study suggests that GCC policymakers should improve economic stability and job security for expatriates, lower transaction fees, and promote digital remittance methods to enhance remittance outflows.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/03796205.2024.2378693 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rseexx:v:48:y:2024:i:4:p:347-364

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rsee20

DOI: 10.1080/03796205.2024.2378693

Access Statistics for this article

Studies in Economics and Econometrics is currently edited by Willem Bester

More articles in Studies in Economics and Econometrics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().