Mexico's Drug War Is Hindering The Growth Of The Retail Sector Of Texas Border Cities

Abstract

Between the first quarter of 2007 and the first quarter of 2012, the retail sales of Texas' border cities grew at an unprecedented low quarterly rate of 0.21%. Mexico's drug war contributed significantly to this low growth by hindering the growth of sales to Mexicans who cross the border to shop. This hindrance is likely to continue as long as Mexico's war on drugs continues to generate high levels of violent crime in the northern part of the country.