Impact of Internationalization on Human Development: A Comparative Analysis of Mexico and France, 2000–2019

Abstract

The objective is to determine the relationship between the openness of markets and human development in Mexico and France for the period 2000–2019. A comparative analysis is carried out by looking at the effect of migration (measured by the inflow of remittances) and the opening of capital markets and trade on the Human Development Index in both countries. Estimations are based on a Cointegrated Vector Autoregressive model. Results show that Foreign Direct Investments has a positive influence on HDI in both countries, but remittances seem to contribute more to human development, in Mexico, than trade and capital liberalization do.

Keywords

• Human Development
• Remittances
• Foreign Direct Investment
• Trade Openness