Abstract

ARAGONES, Ana María; SALGADO, Uberto  and  RIOS, Esperanza. Whom do Remittances Benefit?. Economía UNAM [online]. 2008, vol.5, n.14, pp.37-55. ISSN 1665-952X.

In this paper we analyze the remittances from the macroeconomic perspective emphasizing the position of the Mexican Government and how he applies remittances. We try to prove that the Mexican Government has decided to implement a labor-exporter model placing migrant as one of the main sources of foreign currency. These remittances are used to support the State economic neoliberalism policy centered on maintaining a qualification as a low risk country to benefit the foreign investments. Remittances are sent to international reserves to pay different kinds of imports. It is our opinion that the Mexican Government instead, should borrow these remittances from the Central Bank and use them to produce national goods for the population. That would be a way to reverse migrant tendency. Nevertheless, this is not the goal of the Mexican Government because even if the remittances have a positive effect in the current account deficit through transfers, they have a negative impact because of the increase of imports, so the economic growth is null.