Impact of remittances on poverty reduction at the territorial level in Guatemala

This study evaluates the impact of remittances on poverty in a geographical dimension, at the municipal level. To achieve this objective, a cross-sectional econometric model is estimated, with data from 2018. The model is calculated first by the ordinary least squares method and then with intermediate variables, to address the issue of possible endogeneity between poverty and remittances. The results of both models indicate that remittances have a positive impact in reducing the poverty rate of the municipalities. They also reveal that the variables education, formal employment and public investment have the same effect, although to a lesser extent.