Monday, August 20, 2007

Border Security and Remittances

The percentage of Mexicans sending money back home to Mexico has fallen to 64% from 71% at the same time last year according to an Inter-American Development Bank study. Remittances have been shown to be tied positively to good times in the sending country and bad times in the receiving country. Another important influence is how likely the person sending the remittances is going to return to their home country. Around half of Mexican immigrants to the U.S in the early 2000s returned to Mexico within on year of coming to the United States. By increasing the difficulty of crossing the boarder the number returning is shrinking. Which may explain the decrease in the amount of money sent to Mexico.

Or as one of the person on the street from the Onion suggests in response to this report. “Cutting off their family, eh? Then they've truly become Americans.”

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