Farm and non-farm impact of migration to USA on rural Mexico Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/0k225d34t

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  • Migration of labor out of rural areas in Mexico is an increasingly important feature of rural development in Mexico. New literature on migration and development suggests that migrants play a role of financial intermediaries, making it possible for households to overcome credit constraints in their capability to attain the transition from small-scale, self-sufficient agriculture, to a market oriented production. The purpose of this research is to examine the impact of migration on farm and non-farm income at a household level. Using a simultaneous equation model and data from a rural household survey from Mexico, I have tested the hypothesis that neither remittances nor migration have an effect on farm and non-farm income. The econometric findings suggest that the loss of labor to migration has a significant direct negative effect on non-farm income but the direct effect on farm income is not statistically significant. However, there is evidence that remittances have a significant positive effect on both income sources, so that migration has an indirect effect that might compensate for the loss of labor.
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