Effect of foreign remittances on social and human resource development factors: Role of Saudization

Abstract

This study focuses primarily on the impact of remittances on the social and human resource development of a panel of six developing nations from 1990 to 2020. To reach that goal, the study develops three distinct models that capture the social and human resource components of poverty, infant mortality, and school attendance. These models are experimentally evaluated utilizing Fully Modified Ordinary Least Square (FM-OLS), Dynamic Ordinary Least Square (DOLS), and Fixed Effect Ordinary Least Square (FEOLS), followed by the Methods of Moment Quantile Regression (MMQR) technique. In FMOLS, FEOLS, and DOLS calculations, it was discovered that remittances have a beneficial effect on school enrolment but a negative effect on infant mortality and poverty. Remittances have a significant and positive influence on school enrollment at all quantiles, a significant and negative impact on poverty at all quantiles, and a significant and negative effect on infant mortality only at medium to higher quantiles. The findings demonstrate that correctly utilized remittances can significantly improve human resources and reduce poverty in the economies analyzed. If correctly exploited, the results and conclusions may have significant policy implications for decision-makers in remittances.