01727cas a2200253 a 4500 AALejournalIMF004701 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865868 1018-5941 BD-DhAAL BD-DhAAL Ruiz-Arranz, Marta. Are Workers' Remittances a Hedge Against Macroeconomic Shocks? : The Case of Sri Lanka / Marta Ruiz-Arranz, Erik Lueth. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (14 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 We estimate a vector error correction (VEC) model for Sri Lanka to determine the response of remittance receipts to macroeconomic shocks. This is the first attempt of its kind in the literature. We find that remittance receipts are procyclical and decline when the island's currency weakens, undermining their usefulness as shock absorber. On the other hand, remittances increase in response to oil price shocks, reflecting the fact that most overseas. Sri Lankan are employed in the Gulf states. The procyclicality of remittances calls into question the notion that remittances are largely motivated by altruism. Mode of access: Internet Lueth, Erik. IMF Working Papers; Working Paper ; No. 2007/022 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/022/001.2007.issue-022-en.xml IMF e-Library