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Structural Change in MENA Remittance Flows

Author

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  • Naufal, George S

    () (Texas A&M University)

  • Genc, Ismail H.

    () (American University of Sharjah)

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.

Suggested Citation

  • Naufal, George S & Genc, Ismail H., 2013. "Structural Change in MENA Remittance Flows," IZA Discussion Papers 7485, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7485
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    References listed on IDEAS

    as
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Structural Change in MENA Remittance Flows
      by pmakdissi in NEP-ARA blog on 2013-08-05 12:54:43

    More about this item

    Keywords

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

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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