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Remittances from United States to Mexico in Times of the Covid-19 Pandemic, a Directed Acyclic Graph Model

In: The Geoeconomics of the International Monetary Order

Author

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  • Fernando Vera-Sánchez

    (Universidad Anáhuac Puebla)

Abstract

We seek to identify the economic and financial factors of sending remittances from the United States to Mexico in times of the Covid-19 pandemic. To do this, we estimate a linear regression model in first differences with remittances as the dependent variable and some economic and financial variables as independent, as well as a binary variable representing Covid-19. We also apply the econometric technique of Directed Acyclic Graphs. The results show a causal effect of the Gross Domestic Product (GDP) of the United States on remittances from the United States to Mexico, but not relevance on financial variables. They also confirm a change in the behavior of sending remittances from the United States to Mexico between the period before the pandemic and the period after the pandemic.

Suggested Citation

  • Fernando Vera-Sánchez, 2025. "Remittances from United States to Mexico in Times of the Covid-19 Pandemic, a Directed Acyclic Graph Model," Springer Books, in: Jose Carrillo-Pina & Oleksandr Sharov (ed.), The Geoeconomics of the International Monetary Order, pages 341-360, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-90851-4_13
    DOI: 10.1007/978-3-031-90851-4_13
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