Family Remittances: The Stream that Became a River

In this text, Tomás Olvera takes a closer look at how family remittances have become one of Mexico’s three main sources of foreign-currency revenue over recent years. According to the author, these remittances exceed income from international tourism and foreign direct investment. In 2004, a total of 16.6 billion pesos were sent home by Mexicans living abroad and this figure is expected to increase by the end of 2005. This data, he says, positions Mexico as the country with the greatest inflow of family remittances worldwide, surpassing even India. The author analyzes the factors that have contributed to this trend and the impact of remittances on both a micro and macroeconomic scale.