Remittance income and its relationship with human development in the context of mexican regions

Abstract

In theory, remittance income has the potential to significantly influence human development variables, commonly measured through the Human Development Index (HDI). This research applies a multivariate statistical model to test this hypothesis in the context of Mexican regions. The main findings indicate that regions with lower remittance income have higher average household incomes, better levels of education and health, and lower poverty rates. In contrast, regions with severe deficiencies in education, health, and a high proportion of the population living in poverty are the ones receiving higher remittances, showing that these financial flows are not sufficient to overcome the deep structural challenges of the states. Comprehensive strategies that address both remittances and underlying structural factors must be implemented to optimize the benefits of remittances in Mexico.