Determinants of migrant workers remittances: a case study of the Gulf Cooperation Council countries
<p>The purpose of this study is to analyze macroeconomic, non-macroeconomic and</p><p>financial sector development (FSD) factors that influence migrant workers remittances</p><p>in the selected Gulf Cooperation Council (GCC) count...
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| Format: | thesis |
| Language: | eng |
| Published: |
2021
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| Subjects: | |
| Online Access: | https://ir.upsi.edu.my/detailsg.php?det=8626 |
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| Summary: | <p>The purpose of this study is to analyze macroeconomic, non-macroeconomic and</p><p>financial sector development (FSD) factors that influence migrant workers remittances</p><p>in the selected Gulf Cooperation Council (GCC) countries. An augmentedgravity model</p><p>was employed as the theoretical framework and econometric methods were used to</p><p>examine the relationships between macroeconomics (Gross Domestic Product (GDP),</p><p>exchange rates, and inflation rates), non-macroeconomics (borders, cultural and history,</p><p>partner countries, distances, and language) and FSD factors(credit to private sector</p><p>(CPS) and openness to trade (OT)) towards remittances. Data sources fromWorld Bank</p><p>and group of central banks from 1989 to 2012 wereutilized. The empirical findings</p><p>demonstrated that the GDP of the countries was the most significant factor in</p><p>influencing the remittance flows. Moreover, other macroeconomic factors were also</p><p>found to be significant in affecting the remittances including exchange and inflation</p><p>rate. The result further suggested that, the GCC countries share similar results for the</p><p>following non-macroeconomic factors language,cultural and history do provide the</p><p>opportunity to remit extensively. The results also suggested that the development</p><p>factors in financial sector including CPS and OT were significant and positively</p><p>associated to remittances. In conclusion, the GDP (9.421, p<0.001) which is known as</p><p>macroeconomic factor was found to be the significant in determining migrant workers</p><p>remittances in the selected GCC countries, followed by distance (7.101, p<0.001) for</p><p>non-macroeconomic and CPS (1.449, p<0.001) under FSD factor. The implication of</p><p>the study suggested that GCC governments need to understand the consequences of the</p><p>outflow remittances and were recommended to identify significant factors that shape</p><p>the size of remittance flows. Both regions were proposed to formulate policy systems</p><p>of informal channels, including addressing the weaknesses of the formal systems.</p> |
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