Arbeitspapier

Does migration raise agricultural investment? An empirical analysis for rural Mexico

The effect of remittances on capital accumulation remains a contested topic. This paper uses a panel data set from rural Mexico to investigate the impact of remittances on agriculture and livestock investments. After controlling for the endogeneity of migration through an instrumental variable estimation our empirical results show that international migration has a significantly positive effect on the accumulated agricultural assets but not on livestock capital. This suggests that households use the capital obtained from international migration only to overcome liquidity constraints for subsistence production whereas migration itself seems to be the superior investment option compared to other productive activities such as livestock husbandry.

Language
Englisch

Bibliographic citation
Series: Kiel Working Paper ; No. 1840

Classification
Wirtschaft
Subject
migration
investment
Mexico
agriculture

Event
Geistige Schöpfung
(who)
Böhme, Marcus
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2013

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Böhme, Marcus
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2013

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