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Regional Economic Development and Mexican Out-Migration

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  • Kurt Unger

Abstract

This paper shows evidence of positive effects in the economic development of sending communities in Mexico due to migration. The principal hypothesis of this study is that remittances, knowledge and experience acquired by migrants during their migratory cycle, can be translated into larger economic growth in the out migration municipalities. This result presupposes that Government could create complementary incentives to take advantage of profitable activities. Economic and migration data for each municipality is used which allows to associate characteristics of communities, migratory flows and the effects in profitable activities. There are three sections. A first section describes the sending municipalities according to migratory intensity and their urban /rural nature. The second section analyzes the relation between remittances and socioeconomic conditions of the communities. In a third section the effect over time is estimated, relating per capita income growth and migratory flows intensity. The most relevant results are the existence of income convergence over time between high and low migration municipalities in the North and South of Mexico. As well, we find a positive and significant relation between per capita income growth and the percentage of households that receive remittances across communities, both at the country level and for the northern and southern regions separately.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11432.

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Date of creation: Jun 2005
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Handle: RePEc:nbr:nberwo:11432

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  1. Javier Sánchez-Reaza, 2002. "The Impact of Trade Liberalization on Regional Disparities in Mexico," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 33(1), pages 72-90.
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Cited by:
  1. Richard B. Freeman, 2006. "People Flows in Globalization," NBER Working Papers 12315, National Bureau of Economic Research, Inc.
  2. Garduno-Rivera, Rafael & Baylis, Katherine R., 2012. "Effect of Tariff Liberalization on Mexico’s Income Distribution in the presence of Migration," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124740, Agricultural and Applied Economics Association.
  3. Adenutsi, Deodat E., 2011. "Do remittances alleviate poverty and income inequality in poor countries? Empirical evidence from sub-Saharan Africa," MPRA Paper 37130, University Library of Munich, Germany.
  4. Garduno-Rivera, Rafael, 2010. "Effect of NAFTA on Mexico's Income Distribution in the Presence of Migration," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61895, Agricultural and Applied Economics Association.

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