Importance of Remittances Income in Mexico (1995 to 2017)

Flory Anette Dieck-Assad, Ernesto F. Peralta and Eduardo Carbajal-Huerta

The International Trade Journal, 2020, vol. 34, issue 1, 74-93

Abstract: The hypothesis that Mexican remittances (1995 to 2017), one of the main sources of foreign income in Mexico, explain part of the country’s economic growth and that they are a good indicator of the welfare of the population measured through private consumption was not rejected. When applying an autoregressive vector model, there is a causal relationship between remittances and the service sector GDP, but not for industrial GDP. The Stolper–Samuelson theorem is also tested, the concentration of remittances is analyzed for each Mexican state, and the short-run forecast of remittances is presented.

Date: 2020
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DOI: 10.1080/08853908.2019.1687055

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