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Globalization, Migration and Development: The Role of Mexican Migrant Remittances

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  • Ernesto López Córdova

Abstract

This note starts from the premise that, in current debates on the impact of globalization on economic development, the role of international migration has been under-emphasized. In an effort to contribute toward filling that gap, it presents evidence suggesting that remittances sent by international migrants are associated with improved developmental outcomes. Using a cross-section of all Mexican municipalities (over 2400) in the year 2000, it shows that an increase in the fraction of households receiving international remittances is correlated with better schooling and health indicators, and with reductions in poverty. These results are confirmed when we look at migration propensity instead of remittance flows. The econometric exercises control for the likely endogeneity between remittances and migration variables, on the one hand, and developmental outcome variables, on the other.

Suggested Citation

  • Ernesto López Córdova, 2004. "Globalization, Migration and Development: The Role of Mexican Migrant Remittances," Econometric Society 2004 Latin American Meetings 82, Econometric Society.
    • Handle: RePEc:ecm:latm04:82
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    References listed on IDEAS

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    1. Richard H. Adams, Jr. & John Page, 2003. "International migration, remittances, and poverty in developing countries," Policy Research Working Paper Series 3179, The World Bank.
    2. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
    3. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
    4. Alejandra Cox Edwards & Manuelita Ureta, 2003. "International Migration, Remittances, and Schooling: Evidence from El Salvador," NBER Working Papers 9766, National Bureau of Economic Research, Inc.
    5. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
    6. repec:idb:brikps:8285 is not listed on IDEAS
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    More about this item

    Keywords

    Remittances; migration; globalization; development; Mexico;
    All these keywords.

    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • F2 - International Economics - - International Factor Movements and International Business
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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