The Impact of Remittances on the North African Countries

Remittance inflows have emerged as a significant source of external finance for developing economies particularly in North Africa. As globalization accelerates labor mobility remittances play an increasingly critical role in shaping macroeconomic dynamics from GDP growth to labor market structures. This paper examines how remittances impact economic stability in Egypt Morocco Tunisia and Algeria analyzing key channels such as exchange rates inflation balance of payments and labor market participation. The study also evaluates national policies aimed at maximizing the developmental impact of remittance flows. The remainder of this paper is organized as follows: Section 1 reviews the literature Section 2 describes the methodology Section 3 presents the empirical analysis Section 4 discusses policy implications and Section 5 concludes.