Economics at your fingertips  

Are remittances a stabilizing factor in the Mexican economy?

Jorge Eduardo Mendoza Cota
Additional contact information
Jorge Eduardo Mendoza Cota: El Colegio de la Frontera Norte

EconoQuantum, Revista de Economia y Negocios, 2012, vol. 9, issue 1, 83-99

Abstract: This paper evaluates whether remittances can function as a countercyclical mechanism for a recessive phase of the business cycle in Mexico. Remittances have resulted from the intense migration of Mexican workers to the USA during the nineties. The flow of remittances in Mexico had an explosive growth until the year 2006; since 2007, a drastic drop in this growth is observed, and in 2008 it became negative. A panel data model was established using information of the GDP and remittances at the state level for the period 2005-2008. This methodology considersthe regional effects of remittances on the economic growth of the Mexican economy. The econometric results of the analysis indicated that remittances have a positive coefficient with respect to the position of the business cycle in Mexico. Additionally, the findings weaken the positions of those that consider the strategy of promoting remittances for use as a tool formacroeconomic stabilization of the business cycle.

Keywords: remittances; Mexican economy; GDP; economic cycles; economic integration (search for similar items in EconPapers)
JEL-codes: F24 F15 F44 F36 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... l.-9-n%C3%BAm.-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

EconoQuantum, Revista de Economia y Negocios is currently edited by Mauricio Ramirez Grajeda

More articles in EconoQuantum, Revista de Economia y Negocios from Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia. Contact information at EDIRC.
Bibliographic data for series maintained by Sandra Ivett Portugal Padilla ().

Page updated 2019-08-28
Handle: RePEc:qua:journl:v:9:y:2012:i:1:p:83-99