Abstract:
Similar to merchandise trade flows, commuter traffic between international metropolitan areas respond to changes in exchange rates. This paper examines the impact of currency variations on monthly frequency cross border commuter flows between El Paso, Texas and Ciudad Juarez, Mexico. The sample period is January 1979 - July 1988. Exchange rate shocks are found to impact border crossing volumes in statistically significant manners within periods of 8 months or less for the three bridges connecting the two cities.