Homicides, exchange rates, and northern border retail activity in Mexico

Auteur(s) et Affiliation(s)



Description :
This study examines the determinants of retail sales in six cities located along Mexico’s northern border. Retail activity in these cities is found to increase in tandem with real depreciations of the peso, lower unemployment rates in neighboring US counties, and increased border crossings. In recent years, northern Mexico has been deeply affected by a crime wave associated with competition among drug cartels.Homicides related to organized crime are found to have a statistically significant negative impact on retail sales. A surge in crime levels may stifle retail activity in affected areas as extortion and attacks force some stores to close or reduce operating schedules at the same time that some potential customers elect to shop in relatively safer districts across the international divide.


Type de document :
Article de périodique

Source :
The Annals of regional science, issn : 0570-1864, 2014, vol. 53, n°. 3, p. 631-647, nombre de pages : 17, Références bibliographiques : 62 ref.

Date :
2014

Editeur :
Pays édition : Allemagne, Berlin, Springer