Trade cluster impacts on southern border transportation costs

Ernesto Duarte Ronquillo, University of Texas at El Paso


This thesis develops a fixed effect model to analyze the impact of trade clusters on transportation costs. CIF/FOB ratios are utilized as the measures for transportation costs. Grubel-Lloyd and Herfindahl-Hirschman indexes are utilized as variables that identify trade clusters. The focus of this study encompasses four custom districts (El Paso, Laredo, Nogales, and San Diego) located on the southern border of the United-States over the period of 1995-2015. Driscoll-Kraay robust standard errors are calculated for each estimated model. The 9/11 terrorist attack effects are taken into account in the fixed effect model. Empirical results suggest that trade clusters have a negative effect on the transportation costs. These results stand in contrast with those obtained for the northern border of the United States, where trade clusters are found to be associated with higher transportation costs.

Subject Area


Recommended Citation

Duarte Ronquillo, Ernesto, "Trade cluster impacts on southern border transportation costs" (2017). ETD Collection for University of Texas, El Paso. AAI10608492.