Structural Change in MENA Remittance Flows

12 Pages Posted: 13 Jul 2013

See all articles by George Naufal

George Naufal

Texas A&M University; IZA Institute of Labor Economics

Ismail H. Genc

American University of Sharjah, School of Business Administration, Department of Economics

Abstract

After independence, the GCC countries relied heavily on foreign workers from fellow Arab countries. Thus, remittances flowed from GCC to other countries in MENA. In the 1980s-1990s labor source switched to South Asia; so did the flow of remittances. This paper examines the consequences of the shift in the source of labor by econometrically testing the existence of structural breaks in the flow of remittances in the MENA region. The change in the direction of remittance flows deprived several MENA labor exporters of large sums of foreign exchange, adding significant economic, social and political hardships on non-GCC MENA countries.

Keywords: migration, remittances, unit roots, structural break, Gulf Cooperation Council (GCC), Middle East and North Africa (MENA)

JEL Classification: F16, F22, F24, C22

Suggested Citation

Naufal, George Sami and Genc, Ismail H., Structural Change in MENA Remittance Flows. Available at SSRN: https://ssrn.com/abstract=2293302 or http://dx.doi.org/10.2139/ssrn.2293302

George Sami Naufal (Contact Author)

Texas A&M University ( email )

Public Policy Research Institute
4476 TAMU
College Station, TX 77843
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ismail H. Genc

American University of Sharjah, School of Business Administration, Department of Economics ( email )

Sharjah, Sharjah 26666
United Arab Emirates
+971-6-515-2327 (Phone)

HOME PAGE: http://https://www2.aus.edu/facultybios/profile.php?faculty=igenc

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