The Responsiveness of Remittances to the Oil Price: The Case of the GCC
George Sami Naufal
American University of Sharjah; Institute for the Study of Labor (IZA)
Ali A. Termos
American University of Sharjah
IZA Discussion Paper No. 4277
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.
Number of Pages in PDF File: 24
Keywords: elasticity, remittances, oil price, GCC
JEL Classification: F24, P22, N15working papers series
Date posted: July 21, 2009
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