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Abstract Remittances have become a significant component of international capital flows, with millions of migrants sending billions of dollars back to their home countries annually. However, the way these outflows affect macroeconomic variables has not received sufficient attention in the literature, especially in the context of varying levels of financial development. Using time series data from 1987 to 2022 for the United Kingdom, this study examines the macroeconomic effects of remittance outflows and financial development. Our baseline estimation using the Autoregressive Distributed Lag model reveals heterogeneous impacts, as remittance outflows adversely affect economic growth but improve exchange rates. We find remittances do not have a significant effect on inflation or bank rates. The moderating effect of financial development analysis reveals a similar outcome. Our results suggest governments should consider stimulus policies that support investment in productive sectors to improve macroeconomic indicators and facilitate financial inclusion to enhance the adoption of growth strategies that promote remittances.

Remittances have become a significant component of international capital flows, with millions of migrants sending billions of dollars back to their home countries annually. However, the way these outflows affect macroeconomic variables has not received sufficient attention in the literature, especially in the context of varying levels of financial development. Using time series data from 1987 to 2022 for the United Kingdom, this study examines the macroeconomic effects of remittance outflows and financial development. Our baseline estimation using the Autoregressive Distributed Lag model reveals heterogeneous impacts, as remittance outflows adversely affect economic growth but improve exchange rates. We find remittances do not have a significant effect on inflation or bank rates. The moderating effect of financial development analysis reveals a similar outcome. Our results suggest governments should consider stimulus policies that support investment in productive sectors to improve macroeconomic indicators and facilitate financial inclusion to enhance the adoption of growth strategies that promote remittances. [ABSTRACT FROM AUTHOR]

This article investigates the effect of economic uncertainty on remittances sent by migrants residing in developed countries to their home countries. The analysis builds on the economic uncertainty index developed by Ahir et al. that reflects the uncertainty related to economic and political events, regarding both near‐term and long‐term concerns. Economic uncertainty has deleterious effects on remittance outflows from developed countries, especially when uncertainty reaches high levels. Developing countries would therefore suffer from reduced remittance inflows if the current fragmentation of the world were to become protracted, resulting in higher barriers to the movement of capital and people. [ABSTRACT FROM AUTHOR]

This study examines the potential relationship between inflation and remittance outflows in Saudi Arabia over the period 1971–2019 by applying the autoregressive distributed lag (ARDL) model. As a pioneering study in Saudi Arabia, the paper addresses an important literature gap. The statistical tests reveal the model’s reliability and the existence of a long-run equilibrium among the variables. Moreover, the empirical results show a significant negative impact of inflation has on remittance outflows, and the short-run and long elasticities of remittance with respect to inflation are 0.26% and 0.32% respectively. These results suggest that despite the weak elasticity of remittance outflows to the inflation rate, an increase in general prices would reduce remittance outflows in Saudi Arabia. Moreover, we find that the capital investment indicator has a more significant effect on the volume of remittance outflows. Therefore, policymakers in Saudi Arabia should apply appropriate actions to reduce the outflows of foreign workers by urging private companies to hire more Saudi workers, increasing capital investment and encouraging foreign workers, especially those with high incomes, to invest in Saudi Arabia by facilitating their ownership of financial market shares and real estate units.

The paper investigated whether countries should restrict remittance outflows by analysing their impact on economic performance using Ivorian data ranged from 1975 to 2016. An ARDL model was used to assess both short and long-run relationships between remittance outflows and per capita GDP. The findings suggest a long-run and nonlinear relationship between these variables. Moreover, remittance outflows positively and significantly impact economic performance. We found a turning point at $ 379.485 million, beyond which each dollar remitted, will have a negative effect on economic performance. Given the current level of remittance outflows, actions towards restriction should be considered. [ABSTRACT FROM AUTHOR]

This research aims to examine the effects of remittance outflows on Saudi's non-oil economic growth (NOGDP). While few studies have examined the effects of remittance outflows on remitting countries' economic development, none have looked into the asymmetric impact on Saudi Arabia's non-oil economic growth. This research fills the gaps by looking at the uneven effects of remittance outflows on Saudi NOGDP from 1990 to 2020. The empirical estimation is based on the NARDL (Nonlinear Autoregressive Distributed Lags) method. The results show that remittance outflows have a considerable positive effect on Saudi NOGDP, indicating its economic benefit. We found that the government's current and capital expenditures have statistically significant positive impacts on NOGDP in the long and short runs. Consequently, several policy insights could be considered to maximize the effectiveness of government fiscal policy in supporting non-oil sector development. The positive effect of remittance outflows on Saudi economic growth could be the vital role of the imported high-skilled and productive labour force in developing the non-oil private sector. The positive influence of remittances on Saudi economic growth is essential for policymakers who have to undertake a unique Saudi policy to diversify the labour market and encourage local consumption and investment spending by international workers. [ABSTRACT FROM AUTHOR]

This study examines the potential relationship between inflation and remittance outflows in Saudi Arabia over the period 1971–2019 by applying the autoregressive distributed lag (ARDL) model. As a pioneering study in Saudi Arabia, the paper addresses an important literature gap. The statistical tests reveal the model's reliability and the existence of a long-run equilibrium among the variables. Moreover, the empirical results show a significant negative impact of inflation has on remittance outflows, and the short-run and long elasticities of remittance with respect to inflation are 0.26% and 0.32% respectively. These results suggest that despite the weak elasticity of remittance outflows to the inflation rate, an increase in general prices would reduce remittance outflows in Saudi Arabia. Moreover, we find that the capital investment indicator has a more significant effect on the volume of remittance outflows. Therefore, policymakers in Saudi Arabia should apply appropriate actions to reduce the outflows of foreign workers by urging private companies to hire more Saudi workers, increasing capital investment and encouraging foreign workers, especially those with high incomes, to invest in Saudi Arabia by facilitating their ownership of financial market shares and real estate units. [ABSTRACT FROM AUTHOR]

This research aims to examine the effects of remittance outflows on Saudi’s non-oil economic growth (NOGDP). While few studies have examined the effects of remittance outflows on remitting countries’ economic development, none have looked into the asymmetric impact on Saudi Arabia’s non-oil economic growth. This research fills the gaps by looking at the uneven effects of remittance outflows on Saudi NOGDP from 1990 to 2020. The empirical estimation is based on the NARDL (Nonlinear Autoregressive Distributed Lags) method. The results show that remittance outflows have a considerable positive effect on Saudi NOGDP, indicating its economic benefit. We found that the government’s current and capital expenditures have statistically significant positive impacts on NOGDP in the long and short runs. Consequently, several policy insights could be considered to maximize the effectiveness of government fiscal policy in supporting non-oil sector development. The positive effect of remittance outflows on Saudi economic growth could be the vital role of the imported high-skilled and productive labour force in developing the non-oil private sector. The positive influence of remittances on Saudi economic growth is essential for policymakers who have to undertake a unique Saudi policy to diversify the labour market and encourage local consumption and investment spending by international workers.

The literature on remittance flows has relatively little information on the impacts of remittance outflows on countries. The Russian Federation consistently ranks among the top remittance senders in the world, however the Russian case remains a largely unstudied area. This article addresses this gap. The findings show that remittance outflows are still very small compared with GDP and that the Russian economy will continue to need foreign labour. So-called push factors in neighbouring countries will also continue to make the Russian Federation an attractive workplace for foreign workers. The authors encourage the Government of the Russian Federation to take pre-emptive measures for both political and economic reasons, such as offering more investment opportunities for expatriate workers. [ABSTRACT FROM AUTHOR]

How does a decline in oil prices and its impacts on growth affect remittance outflows from the Gulf Cooperation Council (GCC) countries? This paper carries out an empirical analysis of the relationship between oil prices, oil‐ and non‐oil GDP, and remittances outflows from the GCC. The findings of our paper are three folds. First, we find that non‐oil GDP is a key determinant of remittance outflows and that oil GDP is a significant driver of non‐oil GDP in the GCC only in the long term. Second, we document that historically oil prices and remittances tend to broadly move in the same direction but that remittances have been much less volatile than oil prices. An analysis of the past large oil price declines shows that remittance flows to major remittance recipients in Mashreq, Pakistan, and Yemen fell only modestly following large declines in oil prices and recovered quickly in line with oil prices. Finally, we estimate the elasticity of remittance outflows with respect to non‐oil GDP in the GCC using various techniques. Estimates of short‐term elasticity vary between 0.5 and 0.8, while estimates of long‐term elasticity vary between 0.6 and 1.1. We find that construction and government services are two non‐oil GDP components that are strongly associated with remittance outflows. [ABSTRACT FROM AUTHOR]