Vol. 3 No. 5 (2007)

Artículos

Remittances, Foreign Direct Investment, and Tourism: Some Long-term Interrelations with Private Consumption in Mexico

Published 2007-07-02

  • José Luis de la Cruz Gallegos
    • ,
  • Francisco Carreño Martínez
    • ,
  • José Antonio Núñez Mora

José Luis de la Cruz Gallegos
Instituto Tecnológico de Estudios Superiores de Monterrey, Departamento de Finanzas y Economía

Francisco Carreño Martínez
Instituto Tecnológico de Estudios Superiores de Monterrey

José Antonio Núñez Mora
Instituto Tecnológico de Estudios Superiores de Monterrey

Abstract

This investigation shows a causality analysis among private consumption, foreign direct investment, remittances and tourism incomes. A vector error correction it is applied in order to prove the causal relationship between non-stationary and cointegrated series. The procedure allows test weak exogeneity and the causality direction. The results demonstrate a positive causal relationship from foreign direct investment, remittances and tourism incomes to the main Mexican consumption components: durable goods and non-durables goods and services. Consequently, it is possible to estimate that a long-run relationship between Mexican population welfare and these foreign financial flows exists.

Keywords

Consumption, foreign direct investment, remittances, tourism, causality

PDF (Spanish)

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