To meet the developmental goals and
fulfill the domestic labor demand of
Saudi Arabia, more than 9.5 million skilled, semi-skilled
and highly skilled workers from across the world are
imported. After the United States of America (USA), it is
the second-largest which is responsible for the larger
outflow of remittances. This study is an empirical
investigation to explore the impact of remittances outflow
on the economic growth activity of Saudi Arabia.
Furthermore, it also tests whether this outflow causes
inflation in the Saudi economy. For the sack of empirical
investigation, this study utilized annual time series data
ranging from 1970 to 2017. Before estimating the shortrun and long-run estimates by the application of the AutoRegressive Distributed Lag (ARDL) method, time-series
properties of data are explored using the Augmented
Dicky Fuller (ADF) test.
1-Nazima Ellahi Assistant Professor, Department of Economics and Finance, Foundation University, Islamabad, Pakistan.2-Taseer Salahuddin Assistant Professor, Director Research National College of Business Administration and Economics, Bahawalpur, Punjab, Pakistan3-Asif Raza Head of Business Operations, DPL (Pvt) Ltd., Islamabad, Pakistan.