IMF paper on workers' remittances in Sri Lanka

In the IMF Working Paper "Are workers' remittances a hedge against macroeconomic shocks? The case of Sri Lanka" the authors 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. The authors 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

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