20 Economics Essay Topics: Hot Issues Related to the Worker’s Remittance

Topics and ideas
Posted on September 7, 2016

If you are tasked with writing your next 5 paragraph essay on worker’s remittance, you might struggle to find an appropriate topic. It is for this reason that a handful of potential topics are listed below:

  1. Why Are Migrant Remittances the External Sources of Capital among Developing Countries in a Region of Your Choosing
  2. How Migrant Remittances Grow in Spite of Falling Capital Market Flows/Foreign Direct Investments
  3. How Remittances Compensate Human Capital Loss for a Developing Country of Your Choosing
  4. Determinants of Remittances in an Area of Your Choosing
  5. Transfer Channels Used for Workers Remittances in an Area of Your Choosing
  6. Methods Used to Estimate Workers Remittance Flows
  7. Costs of International Money Transfers on Fund Transfer Markets in an Area of Your Choosing
  8. Effects of Remittances on Inequality in an Area of Your Choosing
  9. Growth and Balance of Workers Remittance Payments in an Area of Your Choosing
  10. Performance Based Pay’s Impact on Remittances in an Area of Your Choosing
  11. Why Workers Remittances Move Counter-Cyclically with GDP in an Area of Your Choosing
  12. Behavior of Workers Remittance Flow in an Area of Your Choosing
  13. Countries Where Workers Remittances Are the Largest Source of Financing
  14. Why Are Workers Remittances Unilateral Transfers
  15. How Workers Remittances Mitigate Future Liabilities like Profit Transfers
  16. Factors Which Motivate Worker’s Remittance
  17. How Parallel Reductions of Remittances Can Deepen Financial Crises
  18. How Parallel Reductions in Workers Remittances Can Reduce Credibility of a Recipient Country of Your Choosing
  19. How Reductions in Workers Remittances Can Contribute to Economic Instability
  20. Impact of NAFTA on Mexican Workers Remittances

Sample 5 Paragraph Essay: Impact of NAFTA on Mexican Worker’s Remittances

On January 1, 1994 the North American Free Trade Agreement (NAFTA) was put into practice, eliminating most of the barriers to trade that had existed between the United States, Mexico and Canada. Some barriers to trade were removed immediately, while others were removed over a period of time. NAFTA addresses textile and apparel, transportation, energy, intellectual property, investment and more. After the creation of NAFTA, two additional related agreements were created to address labor and environmental issues. Prior to NAFTA, U.S. exports to Mexico were in a decline. After NAFTA was introduced, that trend was reversed and 72% of the agricultural products imported into Mexico in 2007 were from the U.S. This agreement has negatively impacted local Mexican labor leading to higher levels of workers remittances. It has also negatively impacted the agricultural sector of Mexico leading to higher levels of workers remittances after workers migrate to America. Finally, it has increased the number of farmers who migrate for long periods of time away from families in search of illegal jobs in America leading to higher levels of workers remittances.

Due to NAFTA Mexico has made strides in nearing the levels of exports of the United States and Canada. Mexican imports to the U.S. have increased four times since the implementation of NAFTA, rising from $60 billion per year to $280 billion. In addition, Mexico has moved from a closed economy becoming open to investments and foreign markets. The amount of foreign direct investment in Mexico has also increased from $1.3 million prior to the implementation of NAFTA to $14 billion after the agreement was launched. Mexico has faced challenges as a result of NAFTA. For instance, the creation of the free trade agreement has not raised the standards of living nor has it created increased incentives for Mexican workers to remain in Mexico instead of migrating north and sending workers remittances.

In addition, the agricultural sector in Mexico has suffered. The Mexican agricultural sector had been highly segmented and contained a large number of small and medium size farmers. It simply was not ready to bear the deregulation of the market as a result of NAFTA. In spite of initial promises by the government to impose tariffs that would ensure a more gradual transition, those promises were never implemented. Instead the market was opened up to imported farm and food products from the U.S. The effect was severe for small and medium size Mexican farmers, who found it difficult to compete with U.S. producers that were large and substantially subsidized.

U.S. farms tend to be much larger in terms of crops and acreage and are often heavily subsidized. Consequently, products can be sold at prices that are much lower in Mexico as compared to locally grown products, particularly maize or corn. In America agriculture is primarily concentrated on a large number of farms in rural areas that are huge and specialized. Less than one-quarter of the population in the United States now lives there. These farms, which are highly mechanized and productive, employ only a small percentage of U.S. workers. In place of the work animals that were once used, some 5 million tractors are now utilized. As a direct result of this transformation, agriculture in the United States has become very efficient and able to contribute to the overall growth of the economy in the U.S. Output from farms in the U.S. has increased dramatically, making it possible for consumers to spend a much smaller percentage of their income on food. In addition, a large percentage of the population has been freed to enter non-agricultural occupations that support economic growth and development. This transformation has been spurred by innovation in technology along with changing market conditions.  As a result, production agriculture has become a much smaller player in both national as well as local rural economies. Although an increasingly integrated market structure has been established in order to meet safety and quality demands from American consumers, global markets have also introduced new consumers at the same time as well as new competitors. This has led to workers illegally crossing the border into America in search of jobs, and using workers remittances to help their families back home.

Overall, NAFTA has proven detrimental to the agricultural sector of Mexico which simply cannot keep in pace with American production. This has led to workers moving to America in search of jobs, both legally and illegally, which has impacted the rate of workers remittances. Moving where there is work, many farmers from Mexico leave their families for extended periods of time in order to send back as much money as possible.


  1. Aggarwal, Reena, Asli Demirgüç-Kunt, and Maria Soledad Martinez Peria. “Do workers’ remittances promote financial development?.” World Bank Policy Research Working Paper 3957 (2006).
  2. Amuedo-Dorantes, Catalina, and Susan Pozo. “Workers’ remittances and the real exchange rate: a paradox of gifts.” World development 32.8 (2004): 1407-1417.
  3. Ascencio, Fernando Lozano. Bringing it back home: Remittances to Mexico from migrant workers in the United States. Vol. 37. Center for Us-Mexican Studies, 1993.
  4. Barajas, Adolfo, et al. “Do workers’ remittances promote economic growth?.” IMF Working Papers (2009): 1-22.
  5. Jongwanich, Juthathip. Workers’ remittances, economic growth and poverty in developing Asia and the Pacific countries. United Nations Publications, 2007.
  6. Mohamed, Sufian Eltayeb, and Moise G. Sidiropoulos. “Does Workers’ Remittances Affect Growth: Evidence from Seven MENA Labor Exporting Countries.” International Research Journal of Finance and Economics 46.14 (2010): 181-94.
  7. Neyapti, Bilin. “Trends in Workers’ Remittances: A Worldwide Overview. “Emerging Markets Finance and Trade 40.2 (2004): 83-90.
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