Resilience or Turbulence? International Financial Flows to Mexico in the Face of the COVID-19 Crisis

Declared a global pandemic by the World Health Organization (WHO) on March 11, 2020, the Coronavirus (COVID-19) outbreak led to stringent social distancing measures and travel restrictions worldwide. These actions precipitated significant shifts in consumer and corporate behavior while disrupting health systems, economies, and societal norms. Throughout this global turmoil, Mexico emerges as an intriguing case study due to its strategic global integration and unique pandemic response. As a result, this study investigates the evolution of Foreign Direct Investment (FDI), Official Development Assistance (ODA), and remittances to Mexico to assess their resilience amidst the pandemic’s disruptions. By employing a mixed-methods approach that incorporates quantitative data analysis and qualitative insights from interviews, the research reveals unexpected economic resilience in these financial flows to Mexico, positioning it as an outlier against global trends. Key factors contributing to...Show moreDeclared a global pandemic by the World Health Organization (WHO) on March 11, 2020, the Coronavirus (COVID-19) outbreak led to stringent social distancing measures and travel restrictions worldwide. These actions precipitated significant shifts in consumer and corporate behavior while disrupting health systems, economies, and societal norms. Throughout this global turmoil, Mexico emerges as an intriguing case study due to its strategic global integration and unique pandemic response. As a result, this study investigates the evolution of Foreign Direct Investment (FDI), Official Development Assistance (ODA), and remittances to Mexico to assess their resilience amidst the pandemic’s disruptions. By employing a mixed-methods approach that incorporates quantitative data analysis and qualitative insights from interviews, the research reveals unexpected economic resilience in these financial flows to Mexico, positioning it as an outlier against global trends. Key factors contributing to this resilience include Mexico’s economic openness, favorable exchange rates, technological advancements, formalization of remittance channels, altruistic motivations, established migration patterns, and tailored policy responses. These findings not only shed light on Mexico’s resilience but also offer actionable insights for policymakers and academics grappling with future global disruptions. By highlighting strategies to bolster economic stability during forthcoming crises, this study contributes to the discourse on resilience-building measures, serving as a valuable resource for stakeholders across various sectors.Show less

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Resilience or Turbulence? International Financial Flows to Mexico in the Face of the COVID-19 Crisis