Kuwait-University-Journal-of-Law-header
Search
Journal of Law

Previous Issues

Advance Search
Year : From To Vol
Issue Discipline:
Author

Volume :23 Issue : 3 2016      Add To Cart                                                                    Download

Impact of Worker Remittances on Economic Growth in Saudi Arabia

Auther : Ahmed A. Almohaimeed

The paper investigates the effect of foreign labor's remittances on the economic growth (1980-2014) in the Kingdom of Saudi Arabia through two channels: the private sector and exports. The bounds testing cointegration approach of Pesaran, et al. (2001) is used to perform the cointegration relationship variables. Also, both the Autoregressive Distributed Lag Approach (ARDL) and error correction model (ECM) are used to estimate the short and long run dynamics. The estimate result shows a negative relationship between economic growth and worker remittance. By contrast, this relationship appears to be positive for exports, private sector's output, and the general price index. Therefore, the obtained result of the short run shows a negative relationship between growth and the rest of the variables where the output growth is affected by worker remittance negatively but positively with exports and the index of the general price level. The results of error correction model also show a high speed adjustment towards a balance. This confirms the need to find appropriate ways to limit the flow of remittance from foreign labors abroad and to channel it into the local economy by stimulating investment and creating new channels for that.

Journal of Law
Journal of Law

You are Visitor No.

77787

Journal of Law
Tell your friendsJournal of Law
Journal of Law
Journal of Law

Last Updated

Nov 19, 2019

Journal of Law
Journal of Law
Journal of Law

Please enter your email Here to receive our news

Journal of Law