Remittances and Risk Diversification in Developing Country Context: Evidence from Sri Lanka

Siriwardhane, Dinesha and Amaratunge, Sampath (2018): Remittances and Risk Diversification in Developing Country Context: Evidence from Sri Lanka. Published in: Rajarata Journal of Social Sciences , Vol. 4, No. 2 (January 2019): 01-17.

Abstract

This study examines the risk diversification of remittance receivers in developing countries, with specific focus on Sri Lanka. Study uses survey data on migration and remittances collected from 750 remittance receiving and non-receiving households in Sri Lanka. Descriptive statistics and Propensity Score matching analysis are used to analyze data. Inter and intra group comparisons of income profiles and other descriptive statistics provide evidence for risk diversification of remittance receivers. Remittance receiving households receive income from diversified sources that support them to diversify the risk they face in the local context. In the propensity score matching analysis it was found that remittances uplift the remittance receivers in the income hierarchy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Labour Migration, Remittances, Risk Diversification, South Asia
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development

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