Untapped resources are hard to come by in the realm of international development. Migrant remittances, however, represent a relatively unexploited resource bank for developing countries. Still, researchers often debate the degree to which migrant remittances actually incite community development in practice. I rekindle the this theoretical discussion by comparing the development effects of household remittances with investments made through the remittance-channeling program 3×1 para migrantes in Guanajuato, Mexico. Regression analysis demonstrates that household remittances repress development outcomes across Guanajuato's 46 municipalities, while remittances invested through the 3×1 program have a positive effect on indicators of municipal wellbeing, including healthcare, education, and income. To my knowledge, this is the first attempt to systematically compare the development effects of household remittances with the development outcomes of remittances transferred through a government-supported program like 3×1 para migrantes. This research has meaningful implications for policy makers in migrant-sending regions around the world as well as agents of international development such as the International Monetary Fund and the World Bank.
Skip Nav Destination
Article navigation
Winter 2015
