AbstractThe 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 infla.....