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Regional Economic Development and Mexican Out-Migration

  • Kurt Unger

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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File URL: http://www.nber.org/papers/w11432.pdf
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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
Date of revision:
Handle: RePEc:nbr:nberwo:11432
Note: ITI LS
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  1. Rodolfo Cermeño & David Mayer-Foulkes & Ariadna Martínez, 2006. "Convergencia, divergencia y estratificación: Estudio comparativo de la dinámica de crecimiento de la manufactura en los municipios mexicanos y los condados norteamericanos," Working papers DTE 378, CIDE, División de Economía.
  2. Javier Sánchez-Reaza, 2002. "The Impact of Trade Liberalization on Regional Disparities in Mexico," Growth and Change, Wiley Blackwell, vol. 33(1), pages 72-90.
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