Economic Interdependence between Oil Producing and Labor Exporting Countries

Oil and workers' remittances play an important rolein the international economy. Only a few articleshave been trying to investigate the effects of oilprice fluctuations on both oil producing and laborexporting countries. For oil producing countries, theconcentration in production might be the main reasonfor the fluctuation in export earnings that lead tolarge changes in export revenues. Because of the lackof skilled labor in oil producing countries, they areheavily dependant on the skilled workers from laborexporting countries such as Pakistan, India,Bangladesh, Egypt, the Philippines, and othercountries. So, any oil shock is expected to harmlabor exporting countries by influencing the workers'remittances. This book is expected to enrich theinternational library with the importance of workers'remittances to labor exporting countries. I hope thatthis book will help the international community torealize how negatively the oil price fluctuationswould influence poor countries (labor exportingcountries) through affecting workers' remittanceswhich are important to macroeconomic variables suchas investment, consumption and thus gross domesticproduct (GDP).