Globalization, Migration and Development: The Role of Mexican Migrant Remittances
Ernesto Lopez Cordova
Inter-American Development Bank (IDB)
October 1, 2004
INTAL/ITD Working Paper No. 20
In this paper, we present evidence indicating that international migrant remittances lead to improved developmental outcomes. Using a cross-section of all Mexican municipalities (over 2400) in the year 2000, we show that an increase in the fraction of households receiving international remittances is correlated with better schooling and health indicators and with reductions in poverty, even after controlling for the likely endogeneity between remittances and developmental outcome variables. Our findings have important policy implications as they suggest that national governments and the international community should adopt measures that facilitate remittance flows.
Number of Pages in PDF File: 35
Keywords: Remittances, migration, globalization, development, Mexico
JEL Classification: I0, F2, O15
Date posted: February 17, 2005
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