Freight transportation costs and the thickening of the US–Mexico border

Abstract

Border regulatory requirements and administrative practices changed subsequent to the September 11, 2001 (9/11), terrorist attacks in the United States. Research in this study examines the manners in which transportation cost data for merchandise imports from Mexico behaved before and after 2001. Evidence is obtained that confirms results earlier tabulated for imports from Canada. Empirical results further indicate that, beyond freight cost changes, growth in the value of imports from Mexico was disrupted by events associated with the aftermath of 9/11.

Keywords:

• border economics
• freight costs
• international trade
• terrorism

JEL Classification:

• F15
• M21
• R15

Acknowledgements

Helpful suggestions and comments were provided by Sal Hernandez. Econometric research assistance was provided by Alejandro Ceballos, Stephanie Daw and Alan Jiménez.

Funding

Funding support for this research was provided by El Paso Water Utilities, Hunt Communities, Texas Department of Transportation, UTEP Center for the Study of Western Hemispheric Trade and a UTEP College of Business Administration Faculty Research Grant.