Regional determinants in origin–destination remittance flows from the US to Mexico: evidence from the COVID-19 pandemic

Miguel Flores and Leonardo Torre

Regional Studies, 2024, vol. 58, issue 12, 2389-2403

Abstract: Despite expectations of a decline in remittances due to rising US unemployment, total remittances to Mexico increased during the COVID-19 pandemic, although with regional disparities. Using a spatial gravity econometric model with state-level origin–destination data, we analysed these variations, considering regional economic and health conditions and demand for digital remittance services. The study focused on the second quarter of 2020, marked by lockdowns and economic disruptions. Findings suggest a strong link between employment changes and digital service demand, influencing US remittance flows. Results for Mexico support the significant impact of digital services over the altruistic hypothesis, highlighting the need for a regional approach to studying remittances.

Date: 2024
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DOI: 10.1080/00343404.2024.2409175

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