| Abstract: |
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. |
| Keywords: |
Middle East , Oil producing countries , Cooperation Council for the Arab States of the Gulf , Economic growth , Capital flows , Gross domestic product , Private consumption , Private investment , Outward remittances , Regional shocks , Oil prices , Capital markets , Business cycles , Emerging markets , |