アラビアン・ジャーナル・オブ・ビジネス・アンド・マネジメント・レビュー

The Impact of Foreign Workers, Outflow Remittances on Economic Growth in Selected GCC Countries: ARDL Approach

Abstract

Abdelbagi Edrees

This study investigates the impact of foreign workers and outflow remittances on economic growth of selected GCC countries, namely, United Arab Emirates, Saudi Arabia, and Qatar. The study covers the time from 1985 to 2014 and utilizes annual data obtained from World Bank and International Labour Organization, the study uses Autoregressive Distributed Lag approach (ARDL). The reason behind selection of these countries is that the three countries depend mostly on foreign worker in most of the sectors of their economies, besides, the outflow remittances from these countries are among the highest in GCC countries. The results of ARDL reveal that foreign workers contribute positively to economic growth while outflow remittances have negative significant impact on economic growth of countries of interest.