01885cas a2200253 a 4500 AALejournalIMF004648 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865509 1018-5941 BD-DhAAL BD-DhAAL Lueth, Erik. A Gravity Model of Workers' Remittances / Erik Lueth, Marta Ruiz-Arranz. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper creates the first dataset of bilateral remittance flows for a limited set of developing countries and estimates a gravity model for workers' remittances. We find that most of the variation in bilateral remittance flows can be explained by a few gravity variables. The evidence on the motives to remit is mixed, but altruism may be less of a factor than commonly believed. Most strikingly, remittances do not seem to increase in the wake of a natural disaster and appear aligned with the business cycle in the home country, suggesting that remittances may not play a major role in limiting vulnerability to shocks. To encourage remittances and maximize their economic impact, policies should be directed at reducing transaction costs, promoting financial sector development, and improving the business climate. Mode of access: Internet Ruiz-Arranz, Marta. IMF Working Papers; Working Paper ; No. 2006/290 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/290/001.2006.issue-290-en.xml IMF e-Library