Kiel Working Papers, Kiel Institute for World Economics
No 1840:
Does Migration Raise Agricultural Investment? An Empirical Analysis for Rural Mexico
Marcus Böhme
Abstract: 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
Keywords: migration, investment, Mexico, agriculture; (follow links to similar papers)
JEL-Codes: D1,; J6,; O1; (follow links to similar papers)
31 pages, May 2013
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