Article
Publication Date
January 2017
Journal/Book Title/Conference
Geopolitics
Volume
22
Issue
4
Abstract
The violence and insecurity that Mexico suffered during formerPresident Calderon’s war on the Mexican drug cartels havecome at a grave economic cost to many cities. The criminalviolence had an impact on interdependent borderlands, whichare geographic areas that have a symbiotic link between citiesand communities of adjoining territories. Mexican businesspeople and consumers that live in cities along the sharedborder with the United States have the ability to shift theireconomic transactions away from their insecure environmentsand to US border communities. In addition, US residents thatwould normally travel south for economic transactions woulddecide to avoid violent areas and therefore conduct businesson the northern side. This research demonstrates thatincreased violence in Mexico produced a positive economiceffect on the US side of the Mexico–Texas interdependentborderlands. Specifically, our time series analysis (2002–2014)shows that increased homicides, kidnappings and extortions inadjacent Mexican cities are strongly associated with highergross total sales in the Texas communities while controllingfor economic and demographic factors. We also found that theincreases in the three crime categories were not associatedwith the arts, entertainment and recreation sector, nor theaccommodation and food services sector performance.However, there was a positive relationship with the retailsales sector.
First Page
934
Last Page
957