IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/24210.html
   My bibliography  Save this paper

Impact of global economic imbalance on migrant workers and economies of the Gulf Cooperation Council

Author

Listed:
  • Marzovilla, Olga

Abstract

GCC Countries are characterized by a high incidence of foreigners on both the overall population and the labour force as well as by deep inequalities in social and economic term. These features have influenced the labour market and fuelled mutual tensions and grievances between nationals and foreigners. Consequently, these Countries need to reconcile the demands of economic growth with those of social stability. The latter requires a more equitable allocation of rights and duties along with not only more effective actions in terms of human rights, but also more stable economic dynamics, that prevents the redistributive effects of inflation. The anti-inflationary objective is a priority for Gulf Countries, which entails not only countering the effects, but also removing the causes of inflation. The experience of the new millennium showed that the dollar peg, which characterizes the exchange rate regime of the GCC Countries, was a major vehicle of inflation for Gulf economies and suggests the advisability for its amendment. The alternative proposed in this article is to adopt a basket peg system whereby national currencies could be anchored to a basket of strong currencies that mirror direction and intensity of commercial and financial flows on the international market.

Suggested Citation

  • Marzovilla, Olga, 2010. "Impact of global economic imbalance on migrant workers and economies of the Gulf Cooperation Council," MPRA Paper 24210, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:24210
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/24210/1/MPRA_paper_24210.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2004. "The revived Bretton Woods system," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 307-313.
    2. Miranda Xafa, 2007. "Global Imbalances: Do They Matter?," Cato Journal, Cato Journal, Cato Institute, vol. 27(1), pages 59-68, Winter.
    3. Naufal, George S & Termos, Ali, 2009. "The Responsiveness of Remittances to the Oil Price: The Case of the GCC," IZA Discussion Papers 4277, Institute for the Study of Labor (IZA).
    4. Michael P. Dooley & David Folkerts-Landau & Peter M. Garber, 2005. "An essay on the revived Bretton Woods system," Proceedings, Federal Reserve Bank of San Francisco, issue Feb.
    5. Ugo Fasano-Filho & Rishi Goyal, 2004. "Emerging Strains in GCC Labor Markets," IMF Working Papers 04/71, International Monetary Fund.
    6. Richard N. Cooper, 2005. "Living with Global Imbalances: A Contrarian View," Policy Briefs PB05-03, Peterson Institute for International Economics.
    7. Magda Kandil & Hanan Morsy, 2011. "Determinants Of Inflation In Gcc," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 141-158.
    8. Habib, Maurizio Michael & Stráský, Jan, 2008. "Oil exporters: in search of an external anchor," Working Paper Series 958, European Central Bank.
    9. Behrouz Guerami & S. Nuri Erbas & George T. Abed, 2003. "The GCC Monetary Union; Some Considerations for the Exchange Rate Regime," IMF Working Papers 03/66, International Monetary Fund.
    10. Marzovilla, Olga & Mele, Marco, 2010. "From dollar peg to basket peg:the experience of Kuwait in view of the GCC monetary unification," MPRA Paper 21605, University Library of Munich, Germany.
    11. N/A, 2009. "On the Recession," Local Economy, London South Bank University, vol. 24(3), pages 253-253, May.
    12. Brahim Razgallah, 2008. "The Macroeconomics of Workers’ Remittances in GCC Countries," Working Papers 410, Economic Research Forum, revised 06 Jan 2008.
    13. Hesham Alogeel & Maher Hasan, 2008. "Understanding the Inflationary Process in the GCC Region; The Case of Saudi Arabia and Kuwait," IMF Working Papers 08/193, International Monetary Fund.
    14. Amar Bhidé & Edmund Phelps, 2007. "A Dynamic Theory of China–U.S. Trade," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 8(3), pages 7-25, July.
    15. McKinnon, Ronald I., 2005. "Trapped by the international dollar standard," Journal of Policy Modeling, Elsevier, vol. 27(4), pages 477-485, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    GCC countries; exchange rate regimes; basket peg; dollar peg; inflation; migration; labour market;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F31 - International Economics - - International Finance - - - Foreign Exchange

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24210. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.