The Impact of Remittances on Crime Rates in M?xico

In Mexico, remittance flows represent the second most important source of external income, which amounts to approximately 2.2 percent of the Gross National Product. Recent studies have suggested that not all of the earnings from remittances are spent on consumption; rather, they are invested in productive activities. This applied research Capstone provides a framework for understanding the impact of remittance flows on the social and economic lives of Mexicans within Mexico. The goal is to gain a better understanding of whether remittances have been put to productive use by looking at their impact on the municipal level, specifically by measuring crime rates, such as violence and robbery. The team's hypothesis states that the positive effects of well-invested remittance flows will undermine organized crime within Mexico, thereby resulting in lower crime rates in areas that have higher inflows.