أثر تحولات العمالة الوافدة في النمو الاقتصادي بالمملكة العربية السعودية

Abstract EN

The paper investigates the effect of foreign labors remittances on the economic growth (1980-2014) in the Kingdom of Saudi Arabia through two channels : the private sector and exports.

The bounds testing cointegration approach of Pesaran et al.

(2001) is used to perform the cointegration relationship variables.

Also, both the Autoregressive Distributed Lag Approach (ARDL) and error correction model (ECM) are used to estimate the short and long run dynamics.

The estimate result shows a negative relationship between economic growth and worker remittance.

By contrast, this relationship appears to be positive for exports, private sectors output, and the general price index.

Therefore, the obtained result of the short run shows a negative relationship between growth and the rest of the variables where the output growth is affected by worker remittance negatively but positively with exports and the index of the general price level.

The results of error correction model also show a high speed adjustment towards a balance.

This confirms the need to find appropriate ways to limit the flow of remittance from foreign labors abroad and to channel it into the local economy by stimulating investment and creating new channels for that.