MIGRADOLLARS AND DEVELOPMENT - A RECONSIDERATION OF THE MEXICAN CASE

Economic arguments, quantitative data, and ethnographic case studies a re presented to counter popular misconceptions about international lab or migration and its economic consequences in Mexico. The prevailing v iew is that Mexico-U.S. migration discourages autonomous economic grow th within Mexico, at both the local and national levels, and that it p romotes economic dependency. However, results estimated from a multipl ier model suggest that the inflow of migradollars stimulates economic activity, both directly and indirectly, and that it leads to significa ntly higher levels of employment, investment, and income within specif ic communities and the nation as a whole. The annual arrival of around $2 billion migradollars generates economic activity that accounts for 10 percent of Mexico's output and 3 percent of its Gross Domestic Pro duct.