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Measuring the macroeconomic impact of workers’ remittances in a data-rich environment

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  • Carlos Vargas-Silva
Abstract
This article uses 85 monthly time series from Mexico to study the macroeconomic impact of workers’ remittances. The estimation approach is based on the two-step factor augmented vector autoregression methodology used by Bernanke et al. (2005). The results show that Mexico's inward remittances have a positive impact on prices, the stock market, interest rates and various measures of economic activity.

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  • Carlos Vargas-Silva, 2007. "Measuring the macroeconomic impact of workers’ remittances in a data-rich environment," Applied Financial Economics Letters, Taylor & Francis Journals, vol. 3(6), pages 359-363.
    • Handle: RePEc:taf:raflxx:v:3:y:2007:i:6:p:359-363
    DOI: 10.1080/17446540600993878
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