Migration and remittances on Mexican economic growth

Abstract

Mexican population in 2010 compared with 2000 shows a 32% reduction in international migration and a 36% reduction in the number of people who emmigrated to the United States, so that the USA went from 96% to concentrate 89% of total flow of international Mexican migrants. The aim of this research was to analyze the influence of the variables: number of migrants, the exchange rate, the minimum wage in Mexico, remittances, USA wages, unemployment and inflation in the United States on Mexican economic growth. To develop the study, it was performed a multiple linear regression model of the Gross Domestic Product (GDP) in terms of migration and remittances uptake. Based on statistical and economic analysis, it was concluded that the main explanatory variables for economic growth were: the number of migrants, the exchange rate, remittances, wages and unemployment in the United States.