Remittances and Economic Growth in Mexico: An Empirical Study with Structural Breaks, 1970-2010 (original) (raw)

Remittances and development in Mexico. A critical overview from the macro-economics perspective

This job presents statistical information with the intention of documenting a critical vision on the remittances issues. It is analyzed from a macro-economical dimension the role and meaning of the remittances in the recent economical growth and development in Mexico, particularly in the relation to the remittances’ volume and economical behavior, in relation to other basic macro-economical variables. The hypothesis are confirmed, that in macro-economical terms, the remittances fundamentally constitute a familiar transference funds which have a scarce or null impact on the growth capability and economical development; besides, in Mexico the remittances have not followed a linear and growing tendency. So in moments of stability and economical growth, remittances have been relatively stable, whereas they are significantly increased in the economical crisis periods.

Remittances and Economic Growth: Analysis of the Direct and Indirect Effects

2017

As remittances inflows have increased steadily in the recent years, researchers and policy makers have analyzed more and more the impact those flows have on economic development. However, the literature has not reached a consensus on whether remittances where beneficial or not for economic growth. This paper investigates the direct and indirect effects of remittances on economic growth using a dataset of 129 countries between 1980 and 2014. The potential stabilizing role of remittances on output volatility will be analyzed as well. I extended the Augmented Solow Model developed by Mankiw, Romer and Weil (1992) with remittances to highlight two main growth channels: human and physical capital accumulation. Results showed that remittances had a direct positive impact on economic growth which was enhanced where physical and human capital accumulation levels were low. Furthermore, remittances are not used as a way to smooth consumption. Results therefore show that households use remitta...

Does Workers' Remittances Affect Growth: Evidence from Seven MENA Labor Exporting Countries

International Research Journal of Finance and Economics, 2010

This paper presents an empirical examination of effects of workers' remittance on economic growth in a sample of 7 remittance-receiving MENA countries. In order to empirically analyze the impact of remittances we estimate growth equations using a set of 7 MENA labor exporting countries during the period 1975-2006. A standard growth models are estimated using both fixed-effects and random effects models. The empirical results show the support of the fixed-effects method as the random effects model is rejected in statistical tests. The results show the support for the view that remittances have a positive impact on growth both directly and indirectly through their interactions with financial and institutional channels.