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Motivation: Despite efforts to reduce poverty, both income and multidimensional poverty continue to be high in Mexico, especially in rural areas. Most studies concerned with the effect of credit use on poverty analyse formal credit, but little is known about the impacts of different types of credit on poverty. Purpose: We investigate the impacts of the use of formal credit and informal loans obtained (primarily) for productive and investment purposes on multidimensional and income poverty of rural households in Mexico. Approach and methods: We use data from the 2013 and 2015 CONEVAL Surveys of Rural Households in Mexico, representative of rural communities with fewer than 2,500 inhabitants, to investigate the impact of credit on poverty. We apply inverse probability of treatment weighting (IPTW) to account for differences between users of formal credit, users of informal loans, and non‐users of credit. Findings: Both formal and informal credit usage reduce poverty in rural Mexico, generally with clearer impacts on moderate rather than extreme poverty. Informal credit appears to have largely reached households that could most benefit from it. Broader access to formal credit would potentially further reduce poverty. Policy implications: Public policies to reduce rural poverty should promote a greater access to the formal financial sector. Including vulnerable low‐income rural households in formal finance should be accompanied by financial education. [ABSTRACT FROM AUTHOR]

Motivation: The eradication of poverty is one of Mexico's greatest challenges. This challenge is even greater for Indigenous communities, where seven out of 10 people were living in poverty in 2018. Despite the economic, social, and cultural impacts on Indigenous people, there has been scant literature addressing the determinants of Indigenous poverty in Mexico, while studies on the Guerrero Mountain Region (GMR) are scarcer still. Purpose: This study aims to identify the socioeconomic and contextual determinants of income and multidimensional poverty in the GMR, one of the poorest regions in Mexico and Latin America, inhabited primarily by Indigenous people. Methods and approach: We use data on 989 individuals in the GMR, collected during the 2018 Socioeconomic Conditions Module of Mexico's National Household Income and Expenditure Survey. To examine the main determinants of individual poverty, we use Bayesian logistic regression (BLR), which allows us to use the data to update information about the parameters and evaluate their distributional properties. The method simplifies multi‐causal elements by classifying them into categories of well‐being that incorporate more than economic factors. Finding s : The income‐poor population is also multidimensionally poor. Education helps to reduce poverty as households that spend more on schooling are less likely to be poor. Households with many members, those with high dependency ratios, and those with members living with disability all tend to be poor. Households with access to landlines and the internet are less likely to be poor. Policy implications: More diagnosis of poverty is needed. This should consider overlapping vulnerabilities (institutional, socioeconomic, environmental, and sociocultural) in this region for each Indigenous group. Public policies need to be monitored for performance. [ABSTRACT FROM AUTHOR]

The purpose of this article is to estimate the impact of Internet access on poverty for a sample of people living in contrasting regions located across rural Mexico. Using a quasi-experimental technique, our results suggest that Internet access is an additional mechanism that contributes to decreasing poverty levels. Consequently, it could assist in increasing the proportion of people living out of poverty in rural areas; however, this is not uniform across regions (higher positive effects are estimated for less developed regions). These findings highlight the prevailing regional heterogeneity in Mexico's rural sector and suggest that governments must design better-targeted public policies that address the uneven development in Internet diffusion typical of the rural sector. These policy improvements would allow governments to maximize the potential benefits of the Internet, as this technology alone is not sufficient to break the cycle of poverty in middle-income countries like Mexico. [ABSTRACT FROM AUTHOR]

This article aims to empirically assess the impact of international remittances on domestic tourism expenditure (DTE) in Mexican households. Using Probit and Tobit regressions with instrumental variables and information from the 2016 National Household Income and Expenditure Survey, our findings show that international migrants' remittances can improve DTE among Mexican households. Controlling for endogeneity of remittances, the results show a statistically significant and positive impact of international remittances on both the probability and the amount of money spent on domestic tourism. This suggests that international remittances provide the necessary resources to alleviate the liquidity constraints that restrict access to tourism activities for recipient households. This research also highlights the need to encourage public policy recommendations aimed at promoting tourism-related development in Mexico. [ABSTRACT FROM AUTHOR]