A Spatial Approach to the Link between Remittances and Regional Growth in Mexico

This article studies the link between the inflow of remittances from international migrants and Mexico¿s regional growth in recent years. The results highlight the presence of a strong polarization in the regional behavior of the remittances/gdp ratio. The article also shows that this polarization is spatially associated with the economic growth of states. It specifically describes a recently observed process: a loss of dynamism in the growth of the remittances/gdp ratio within the region that has had a long history of migration and the presence of high growth rates in the remittances/ gdp ratio in much of southern Mexico. This suggests that remittances might be playing an anti-cyclical role. However, once we use an econometric spatial model to explain the states¿ economic growth, there is a lack of solid evidence indicating that remittances are contributing significantly to growth at the state level