UPSI Digital Repository (UDRep)
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Abstract : Universiti Pendidikan Sultan Idris |
The purpose of this study is to analyze macroeconomic, non-macroeconomic and
financial sector development (FSD) factors that influence migrant workers’ remittances
in the selected Gulf Cooperation Council (GCC) countries. An augmentedgravity model
was employed as the theoretical framework and econometric methods were used to
examine the relationships between macroeconomics (Gross Domestic Product (GDP),
exchange rates, and inflation rates), non-macroeconomics (borders, cultural and history,
partner countries, distances, and language) and FSD factors(credit to private sector
(CPS) and openness to trade (OT)) towards remittances. Data sources fromWorld Bank
and group of central banks from 1989 to 2012 wereutilized. The empirical findings
demonstrated that the GDP of the countries was the most significant factor in
influencing the remittance flows. Moreover, other macroeconomic factors were also
found to be significant in affecting the remittances including exchange and inflation
rate. The result further suggested that, the GCC countries share similar results for the
following non-macroeconomic factors language,cultural and history do provide the
opportunity to remit extensively. The results also suggested that the development
factors in financial sector including CPS and OT were significant and positively
associated to remittances. In conclusion, the GDP (9.421, p |
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