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ABSTRACT
Panel regression analysis is used to examine the impact of trade clusters on transportation costs along the southern border of the United States. CIF/FOB ratios are utilized as the transportation cost measures. Grubel-Lloyd and Herfindahl-Hirschman indexes are utilized to identify trade clusters in the sample. Data are assembled for four customs districts (El Paso, Laredo, Nogales, and San Diego) during a 20-year period between 1995 and 2015. Empirical results suggest that trade clusters are associated with reduced transportation costs. These results differ from those of the northern border of the United States, where trade clusters have higher transportation costs.
Disclosure statement
No potential conflict of interest was reported by the authors.
Additional information
Funding
Financial support for this study was provided by the Texas Department of Transportation ICC 24-0XXIA001, the City of El Paso Office of Management & Budget, El Paso Water, National Science Foundation Grant DRL-1740695, TFCU, UTEP Center for the Study of Western Hemispheric Trade, and UTEP Hunt Institute for Global Competitiveness. Helpful comments and suggestions were provided by Jim Peach, Adam Walke, Steven Fullerton, and two anonymous referees. Econometric research assistance was provided by Omar Solís and Karla Santiago.