Determinants of International Remittances in Mexico: Economic vs. Financial Variables

Miguel Vasquez, Fernando Sánchez

2022

Abstract

This work seeks to analyze whether economic or financial variables are more important in determining the remittances sent by Mexican migrants in the United States to their communities of origin. For this, we estimate three models: a linear regression model with all the variables transformed to first differences, to eliminate the possibility of spurious regression; an autoregressive vector (VAR) model that approximates the relationships between variables in the absence of consolidated theories; and Directed Acyclic Graph (DAG) model, which is the most appropriate for estimating causal relationships between variables. The results show that the most important variables in determining the remittances of Mexican migrants in the United States are the economic ones, specifically, the Gross Domestic Product (GDP) of the United States and the Gross Domestic Product (GDP) of Mexico.

Paper Citation

in Harvard Style

Vasquez M. and Sánchez F. (2022). Determinants of International Remittances in Mexico: Economic vs. Financial Variables. In Proceedings of the 4th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB, ISBN 978-989-758-567-8, pages 35-42. DOI: 10.5220/0011034700003206

in Bibtex Style

@conference{femib22,
author={Miguel Vasquez and Fernando Sánchez},
title={Determinants of International Remittances in Mexico: Economic vs. Financial Variables},
booktitle={Proceedings of the 4th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB,},
year={2022},
pages={35-42},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011034700003206},
isbn={978-989-758-567-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB,
TI - Determinants of International Remittances in Mexico: Economic vs. Financial Variables
SN - 978-989-758-567-8
AU - Vasquez M.
AU - Sánchez F.
PY - 2022
SP - 35
EP - 42
DO - 10.5220/0011034700003206