Investigating the Impact of Remittance Outflows and Oil Price on Economic Growth in Gulf Cooperation Council Countries

Most existing studies examine the influence of labor remittance outflows on economic growth in receiving countries, with very few exceptions concerning sending countries. This study employs the nonlinear augmented mean group method to investigate whether remittance outflows have an adverse asymmetric impact on economic growth in Gulf Cooperation Council (GCC) countries during 2000 -2019. The findings reveal that non-oil real GDP responds adversely and in a greater magnitude to an increase in labor remittance outflows than to a decrease. Moreover, this negative impact increases when we account for oil price changes. These findings are of the utmost importance, with several implications for labor markets and nationalization policies in GCC countries