Do Remittance Inflows Increase Energy Security Risk in the Long Run?

Abstract

This chapter examines the long-run effect of remittances on energy security risks of Egypt, Morocco, and Tunisia in a bi-variate setting by utilizing the DOLS, FMOLS, and CCR estimation methods for the 1980-2018 period. The empirical findings of this chapter show that remittances and energy security risks are cointegrated. Additionally, the estimation results show that remittances significantly aggravate energy insecurities in selected MENA countries in the long run. Further, the results of this chapter reveal that remittances' role in increasing energy insecurity should not be overlooked. Therefore, the author proposes that remittance inflows can be utilized as a long-term integral instrument in combating energy insecurity issues and developing new energy policies.