The Responsiveness of Remittances to the Oil Price: The Case of the GCC
24 Pages Posted: 21 Jul 2009
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: elasticity, remittances, oil price, GCC
JEL Classification: F24, P22, N15
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Are Immigrant Remittance Flows a Source of Capital for Development?
By Ralph Chami, Connel Fullenkamp, ...
-
The Optimal Migration Duration and Activity Choice after Re-Migration