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The remittances sent by Mexican migrants in the USA are relevant for recipient household at least in two senses. First, they contribute to rise income, and therefore to diminish poverty level. Second, they also contribute to regional and local economic development via the multipliers generated by the increases of the demand and of the investment in productive activities. Nonetheless, there are several estimations of household remittances magnitude. This paper analyzes the methodologies of Banco de Mexico (Mexican central bank) and those of recognized researchers. There is no consensus regarding the amount of money transferred by Mexican migrants in the USA. Consequently, the positive effects upon the recipient economy may not be conclusive. [ABSTRACT FROM AUTHOR]

Under some conditions, it is possible for foreign debt to lead to declines in fixed investment within a country. In those cases, economic growth will turn negative. This theoretical possibility is known as the debt overhang hypothesis. This study investigates the debt overhang hypothesis for Mexico during the period between 1980 and 2003. Parameter estimation results offer partial evidence in favor of this hypothesis and simulation results exhibit a high degree of correlation with sample historical data. [ABSTRACT FROM AUTHOR]