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Do Remittances Promote Or Deter Sound Fiscal Management Among Municipalities In Mexico?, Jennifer Martinez, Kent Robinson
Do Remittances Promote Or Deter Sound Fiscal Management Among Municipalities In Mexico?, Jennifer Martinez, Kent Robinson
Student Research Symposium
The purpose of this research is to determine the relationship between remittance income (migrant-dollars sent back home) and its effects on municipal tax revenue generation among municipalities in Mexico. A sharp contrast exists between remittances and own-source municipal tax revenue; remittances constitute a healthy 2% of Mexico’s gross domestic product (GDP) whereas the largest own-source revenue contributes only .2% of GDP (World Bank 2015, OECD 2015). In some instances remittances have been so productive that they have been used to fund local public services among municipalities. The objective of my study becomes two fold: first, determine if there is a …