Research Article

The impact of remittances from Canada's seasonal workers programme on Mexican farms

Authors: Lidia CARVAJAL GUTIÉRREZ (Department of Economics, Universidad Autonoma del Estado de Mexico) , Thomas G. JOHNSON (Department of Agricultural and Applied Economics, and Public Affairs, University of Missouri – Columbia)

  • The impact of remittances from Canada's seasonal workers programme on Mexican farms

    Research Article

    The impact of remittances from Canada's seasonal workers programme on Mexican farms

    Authors: ,

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Abstract

This is an accepted article with a DOI pre-assigned that is not yet published.

Based on a survey of participants in Canada's Seasonal Agricultural Workers Program, the authors’ three‐stage least squares estimation of a simultaneous equation model finds that migrants’ remittances enhance on‐farm investments in Mexico, which, in turn, increase farm income. Remittances are also found to have a positive influence on non‐farm income in Mexico, by giving respondents the possibility of starting a new business and diversifying their investments. These results support the hypothesis underlying the “new economics of labour migration” that remittances contribute to economic development by relaxing the credit constraint on the investment function of family farms.

Keywords: labour migration, agricultural worker, Canada, Mexican, migrant worker, remittances

Rights: Copyright © The authors 2016 Journal compilation © International Labour Organization 2016

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