The Impact of Migrant Workers' Remittances in the Economic Performance in The Kingdom of Saudi Arabia During the Period 1980-2012 (An Empirical Study)

Abstract

This paper trys to answer a fundamental and important point is the impact of remittances from expatriate workers in the performance of the Saudi economy. The study is used to answer this point Economic model consists of several equations will be solved this model using an Autoregressive Distributed Lags (ARDL) method. The study is based on data covering the period 1980-2012. it has been obtained from the Department of Statistics and Information in the Kingdom of Saudi Arabia and the base of the International Monetary Fund IFS data base and World Bank data published on the Internet. The study found that there was no statistically significant relationship is moving from expatriate workers' remittances to economic growth , investment spending (capital formation), inflation and consumption. The results proved that there is an inverse relationship in the long-term bi-directional conversions between the rate of employment growth in the Saudi economy. The study recommends that the Kingdom of Saudi Arabia supports the measures to improve the investment environment and increase local employment and job opportunities in order to reduce the volume of such transfers.