Regional foreclosures and Mexican remittances: Evidence from the housing market crisis

Violeta Díaz and Gökçe Soydemir

The North American Journal of Economics and Finance, 2013, vol. 24, issue C, 74-86

Abstract: This study investigates the extent to which Mexican workers’ remittances are affected from the recent housing market decline in the United States. Results from a multivariate model reveal that an increase in the national U.S. foreclosure rate has a negative and statistically significant impact on Mexican remittances. At the regional level, foreclosure rates of the South and the West have a significant impact on workers’ remittances in the same negative direction. However, foreclosure rates from the North Central and East Central regions do not appear to have this statistically significant impact. Lastly, in contrast to previous results in the literature, real exchange rate movements and Mexican remittances seem to be insensitive to one another once the housing market is accounted for in the analysis.

Keywords: Foreclosures; Remittances; Housing; Mexico (search for similar items in EconPapers)
JEL-codes: F24 F31 O1 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:24:y:2013:i:c:p:74-86

DOI: 10.1016/j.najef.2012.06.018

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