Remittances and Economic Growth in Mexico: An Empirical Study with Structural Breaks, 1970-2010

Ramírez, Miguel D.

doi:10.5296/ber.v4i1.5712

Cited by 9 publications

(6 citation statements)

References 29 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Notwithstanding border infrastructure, inflows of monies continue to be an essential part of Mexico's economy. It aligns with prior research that found that remittance flows experience a greater degree of stability and are less susceptible to business cycles (Ramirez, 2014); and are an important source of foreign exchange earnings, ranking third behind Mexico's earning from maquiladoras and oil (Canas et al, 2007). The findings for remittances support the argument that technology has facilitated the growth of economic integration, where monetary funds move relatively seamlessly, regardless of national borders.…”

Section: Resultssupporting

confidence: 85%

In an era of economic integration, the implications of the border wall on Mexico's economy

Gonzalez‐Gorman

2021

Latin American Policy

View full text Add to dashboard Cite

In an era when countries have become politically, technologically, and economically interdependent, global integration has continued to grow. Whereas technology and monetary funds move relatively seamlessly across national borders, the movement of people continues to be problematic. Ethnic and nativist tensions continue to grow, complicating the idea of global and economic integration. As globalization continues to spread, barriers that once fell are now being extended or constructed. One such example is the flourishing economic integration between the United States and Mexico, even as on the US side of the border demands have also grown for extending the border wall. Given that economic integration is a key economic and political agenda for both the United States and Mexico, this study examines the implications of the border wall on economic integration. Specifically, does the border wall undermine the goal of economic integration for Mexico?

show abstract

Section: Resultssupporting

confidence: 85%

In an era of economic integration, the implications of the border wall on Mexico's economy

Gonzalez‐Gorman

2021

Latin American Policy

View full text Add to dashboard Cite

show abstract

“…However, it is noted that the effects of remittances on growth can be unique for each country given the differences in terms of income, population, infrastructure, among other things. Studies which examined remittance‐led growth hypothesis have, for the most part, showed mixed outcomes: Acosta et al., (), Mundaca, (), Catrinescu et al., () Chami et al., (), Jawaid and Raza, (), Ramirez, (), Datta and Sarkar, (), Ramirez, (), Imai, Gaiha, Ali and Kaicker, (), and Nwaogu and Ryan, (), among others…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Remittances on Economic Growth in Kyrgyzstan and Macedonia: Accounting for Financial Development

Kumar

Stauvermann

Patel

et al. 2017

International Migration

View full text Add to dashboard Cite

Kyrgyzstan and Macedonia have experienced a reasonable increase in remittances over the last twenty-five years. Subsequently, the extent to which remittances can be instrumental for economic development of the two countries has gained serious attention in recent development dialogues. The aim of this study is to examine the impact of remittances versus financial development on the economic growth of the two counties, complementing the burgeoning interest and focus on remittances for policy. The short-run and the long-run effects and the causality dynamics of remittances and financial development, are explored. The results show a long-run positive impact of remittances on the economic growth of these countries. The impact of financial development is negative, significant only for Kyrgyzstan and not statistically significant for Macedonia. The causality results show that remittances support economic growth for Kyrgyzstan, whereas economic growth appears to propel remittances for Macedonia.

show abstract

“…Not surprisingly, since most results are based on cross-country regressions (e.g., Adams and Klobodu (2016), Chami et al (2003), Faini (2006), Giuliano and Ruiz-Arranz (2009), Barajas et al (2009), Kratou and Gazdar (2016), Baldé (2011), Annen et al (2016), Minasyan and Nunnenkamp (2016), Abdih et al (2012), Rao and Hassan (2011), Meyer and Shera (2017), Nyamongo et al (2012) and Ramirez and Sharma (2009)). A relatively smaller number of studies have investigated the impact of remittances on growth for individual recipient countries using time series data (e.g., Glytsos (2005) for selected MENA countries, Ang for Philippines, Luqman and Haq (2016), Hussain and Anjum (2014) and Tahir et al (2015) for Pakistan, and Hrushikesh (2008) and Gupta (2005) for India and Ramirez (2014) for Mexico).…”

Section: Workers' Remittances and Growthmentioning

confidence: 99%

Foreign aid, workers’ remittances and economic growth in Jordan

Husein

2019

IJSE

View full text Add to dashboard Cite

Purpose The purpose of this paper is to investigate the long-run impact of foreign aid and workers’ remittances on Jordanian economic growth using time series data for the period 1970–2014. Following the most recent literature, the author also assess whether economic policy enhances economic growth and whether aid effectiveness is conditional on levels of economic policy. Design/methodology/approach The author employs unit root tests that allow for endogenously determined structural breaks (Perron, 1997) and properly utilize the autoregressive distributed lag (ARDL) or bounds testing approach to cointegration by applying both the F- and the t-test statistics (Pesaran et al., 2001). The analysis is applied to 12 different models that incorporates the various types and sources of foreign aid. Findings Empirical results suggest that aid and its various components, and workers’ remittances have had a positive and significant long-run impact on economic growth. Empirical results also show: no evidence supporting the hypothesis that aid is only or more effective in spurring economic growth during periods of “good” macroeconomic policy, i.e., when Jordan has undertaken World Bank Structural Adjustment Programs (SAPs); no robust evidence supporting the World Bank’s claim that SAPs are growth enhancing. Moreover, the author found strong empirical evidence suggesting that exports and human capital are also major determinants of long-run growth in Jordan. Research limitations/implications Although Jordan and the region at large have experienced periods of major political instability that may have had a varying impact on the economy, lack of a reliable and lengthy time series measure that accounts for political instability is not available to include in the study. Practical implications Using cointegration analysis, our empirical evidence reveals that foreign aid, labor remittances, exports and human capital have had a robust positive long-run impact on economic growth. Hence, the Jordanian government should promote policies that encourage donor countries and agencies to further extend aid to Jordan. Moreover, policies that promote exports and facilitate labor mobility to neighboring countries should also be encouraged and promoted. Originality/value Despite receiving a significant amount of foreign aid and labor remittances in the last 50 years, the author found no time series study that tested the long-run impact of these external financing sources on growth in Jordan. This study fills that gap and extends the analysis to test whether macroeconomic policy is growth enhancing and whether aid (and several of its components) are only effective or more effective in promoting growth during periods of “good” macroeconomic policy, i.e., when Jordan has undertaken a World Bank SAP.

show abstract

Remittances and Economic Growth in Mexico: An Empirical Study with Structural Breaks, 1970-2010

Cited by 9 publications

References 29 publications

In an era of economic integration, the implications of the border wall on Mexico's economy

In an era of economic integration, the implications of the border wall on Mexico's economy

The Effect of Remittances on Economic Growth in Kyrgyzstan and Macedonia: Accounting for Financial Development

Foreign aid, workers’ remittances and economic growth in Jordan

Contact Info

Product

Resources

About