Nexus between remittance outflows and economic growth in GCC countries: the mediating role of financial development

Almalki, Abdullah Mohammed; Hassan, Mehboobul; Ul-Haq, Jabbar

doi:10.1080/00036846.2022.2139812

Cited by 11 publications

(3 citation statements)

References 47 publications

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“…Initiating with the short-run results of positive and negative shocks on Indian remittance inflows from the UAE, it has been found that, In the short run, positive shocks to UAE economic growth have a significant positive impact on Indian remittance inflows, with a coefficient of 0.0097 and a t- statistic of 2.29, suggesting that a stronger UAE economy leads to increased remittances to India. This finding corresponds with the similar findings of Al-Malki et al (2022). Conversely, negative shocks to UAE economic growth also have a significant positive impact on remittance inflows, with a coefficient of 0.0157 and a t -statistic of −3.05, indicating that a downturn in the UAE economy also results in increased remittances to India.…”

Section: Empirical Findingssupporting

confidence: 88%

“…This study indicates a negative correlation between a nation's economic growth, the sender of remittances, and the magnitude of remittance outflows. Consequently, it suggests the advantages of promoting the involvement of foreign workers in the economic advancement of a nation (Al-Malki et al , 2022). Furthermore, an investigation into Saudi Arabia has led to the conclusion that economic growth only exerts a positive impact on remittance outflows in the short run, with negligible effects in the long run.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

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Economic and governance drivers of global remittances: a comparative study of the UK, US, and UAE to India

Khan

2024

JFEP

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Purpose The paper aims to analyse the impact of economic and governance factors on remittance inflows to India from the UK, USA and UAE. India is globally recognised as the largest recipient of remittances. Design/methodology/approach Using a comprehensive time series data set spanning 1996 to 2022, the authors use an innovative non-linear autoregressive distributed lag model approach to examine the influence of economic growth, corruption control and employer availability in the three source countries on remittance inflows to India. Findings The results indicate that in the UAE, changes in economic growth and corruption control directly affect remittance outflows. However, the presence of employers in the UAE has minimal impact on remittance outflows to India. Regarding the UK, fluctuations in economic growth primarily drive remittance outflows to India. The effect of corruption control and employment opportunities on remittance outflows is marginal. In the USA, economic growth does not notably impact remittance outflows, whereas corruption control and employment opportunities significantly influence the outflows to India. Originality/value These findings have important implications for policymakers. Analysing macroeconomic factors from key remittance-sending nations offers valuable insights for Indian policymakers and their international counterparts to enhance remittance inflows. The study focuses on three countries that collectively contribute to about 50% of India's remittances, providing a unique contribution compared to the usual country-specific or regional focus in existing literature. Finally, leveraging these findings, NITI Aayog, an organisation dedicated to achieving India's sustainable development goals, can effectively monitor macroeconomic indicators related to significant remittance-sending countries.

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Section: Empirical Findingssupporting

confidence: 88%

Section: Theoretical Backgroundmentioning

confidence: 99%

Economic and governance drivers of global remittances: a comparative study of the UK, US, and UAE to India

Khan

2024

JFEP

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“…And then affects the fiscal decisions of local governments and the change of specific fiscal revenue and expenditure. In a short period of time, the population-exporting regions have to face the lack of labor supply and the decline in investment because the people who are attracted to work and settle in the rapidly developing areas leave their original places of residence [ 1 , 2 ]. More seriously, the local governments of the population-exporting regions have to face a huge fiscal gap, which is caused by insufficient fiscal revenue and huge fiscal expenditure pressure.…”

Section: Introductionmentioning

confidence: 99%

Emigration and fiscal gap in population-exporting region

Li,

Zhang

2024

PLoS ONE

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This paper analyzes how emigration impacts fiscal gap of population-exporting region in the long term. We construct a general equilibrium model of emigration and fiscal gap and make empirical verification using two-step system GMM model. Among the major lessons from this work, five general and striking results are worth highlighting: (1) the economic losses of emigration are the immediate cause of widening the fiscal gap. (2) in the short and long term, emigration can expand the fiscal revenue gap through the superimposed effect of tax rate and tax base. (3) the gap in fiscal expenditure is widened by the outflow of people in the short term. However, local governments would change the strategy to keep the spending gap from widening in the long run. (4) a positive impact of emigration on the fiscal gap. the more severe population emigration, the larger the fiscal gap. (5) when the trend of emigration becomes irreversible, the subsequent efforts of local governments to expand fiscal expenditure for attraction population would not only fail to revive the regional economy, but aggravate the expansion of fiscal gap. The contribution of research is twofold. On the one hand, it fills the theoretical gap between emigration and fiscal gap because previous studies have paid little attention to the fiscal problems of local government of population outflow. On the other hand, the selection of Northeast China that has been subject to long-term out-of-population migration is good evidence to verify this theory, which is tested very well using the 2S-GMM model. The comprehensive discussion on the relationship between emigration and fiscal gap is helpful to guide those continuous population-exporting regions that are facing a huge fiscal gap how to solve the fiscal gap and unsustainability from the perspective of fiscal revenue and expenditure.

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Achieving sustainable development in Sub‐Saharan Africa: Do human capital and foreign direct investment matter?

Onatunji

2024

Manage Decis Econ

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Over the past few decades, there has been a noticeable development of interest among scholars and policymakers worldwide regarding the prominent drivers of sustainable development. The role of human capital and foreign direct investment (FDI) in fostering sustainable development, however, has been largely neglected by policymakers and scholars, despite recent emphasis on FDI amidst current economic performance worldwide, particularly in developing countries. This study empirically investigates the effect of human capital and FDI on sustainable development in sub‐Saharan Africa (SSA) spanning 1991–2021. The empirical analysis was implemented by deploying different techniques, such as feasible generalized least squares, panel corrected standard errors, and Lewbel two‐stage least square techniques, with the panel quantile regression approach as a robustness check. The empirical outcomes show that improvement in human capital via educational attainment fosters economic expansion, employment opportunities, and poverty reduction, whereas an increase in health human capital undermines sustainable development in SSA. The findings also reveal that increasing FDI flows to priority sectors in the region are critical for enhancing human capital, thus stimulating economic performance, job opportunities, and poverty alleviation in SSA. This study puts forward important policy implications for achieving sustainable development.

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Nexus between remittance outflows and economic growth in GCC countries: the mediating role of financial development

Cited by 11 publications

References 47 publications

Economic and governance drivers of global remittances: a comparative study of the UK, US, and UAE to India

Economic and governance drivers of global remittances: a comparative study of the UK, US, and UAE to India

Emigration and fiscal gap in population-exporting region

Achieving sustainable development in Sub‐Saharan Africa: Do human capital and foreign direct investment matter?

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