The Economic Impact of Financial Transfers from Expatriates in GCC Countries on Islamic Developing Nations

The current study examines the impact of expatriates' financial transfers from Gulf Cooperation Council (GCC) countries on economic growth, using panel data from nine Islamic developing nations: Nigeria, Egypt, Pakistan, Algeria, Bangladesh, Sudan, Senegal, Tunisia, and Afghanistan, covering the period from 1990 to 2022. The study adopts both descriptive analytical approach and econometric techniques. The analysis reveals a significant error term in the remittance data, which means that there is a cointegration between financial transfers and economic growth. Additionally, the study identifies a bidirectional causality between these two factors. Accordingly, the study recommends that policymakers in the countries studied develop and implement strategies to optimize the benefits of remittances, ensuring their effective use to foster economic development and improve standards of living.