Remittances in the context of the determinants of private consumption in Mexico, 1995-2017

Abstract

Keynesian and Post-Keynesian approaches in this research analyze the importance of remittances in explaining the growing trends of private consumption, durable, semi-durable, non-durable, domestic and imported goods, and services in Mexico in the period 1995-2017. To estimate the effects of remittances on the explanation of the different goods of consumption and services, the co-integration methodology without FMOLSendogeneity bias was used. To confirm its relevance in the Post-Keynesian context, an econometric analysis exercise was constructed with explanatory control variables alternative to income With the results it is confirmed that remittances together with current income and the real exchange rate are the most important determinants of the explanation of the behavior of goods for their durability and services in Mexico.