Do the Gulf Oil-Producing Countries Influence Regional Growth? The Impact of Financial and Remittance Flows

This paper tests the association between the Gulf Cooperation Council (GCC) countries' financial and remittance outflows and regional growth in the Middle East. The findings, based on 35-year panel data, indicate that growth rates of real GDP, private consumption and private investment in regio...

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Bibliographic Details
Main Author: Ilahi, Nadeem
Other Authors: Shendy, Riham
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2008
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Capacity 
653 |a Economics 
653 |a Emerging and frontier financial markets 
653 |a Capital 
653 |a Finance 
653 |a International finance 
653 |a Private consumption 
653 |a Prices 
653 |a International economics 
653 |a Intangible Capital 
653 |a Exports and Imports 
653 |a Investments: General 
653 |a Financial services industry 
653 |a Investment 
653 |a Saving and investment 
653 |a Private investment 
653 |a Finance: General 
653 |a Remittances 
653 |a Oil prices 
653 |a Macroeconomics 
653 |a Consumption 
653 |a Macroeconomics: Consumption 
653 |a Wealth 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Energy: Demand and Supply 
653 |a Saving 
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520 |a This paper tests the association between the Gulf Cooperation Council (GCC) countries' financial and remittance outflows and regional growth in the Middle East. The findings, based on 35-year panel data, indicate that growth rates of real GDP, private consumption and private investment in regional countries are strongly associated with remittance outflows from and the accumulation of financial surpluses in the GCC. Unlike in other developing and emerging market countries, growth in regional countries is not influenced by growth in the North, and is not export led. Linkages with the GCC could help sustain output growth in the regional countries in the face of the global economic slowdown and oil price shocks and could provide diversification gains to international capital seeking markets uncorrelated with Northern and emerging market countries