El Paso Customs District Cross-Border Trade Flows

Thomas Fullerton (), Richard L Sprinkle and Roberto Tinajero
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Richard L Sprinkle: University of Texas at El Paso

International Trade from University Library of Munich, Germany

Abstract: An important issue in applied international economics is the extent to which trade flows adjust to changes in economic activity, relative prices, and exchange rates. While there have been numerous studies regarding aggregate trade flows, relatively little empirical work has been completed with respect to analyzing international merchandise trade growth throught the United States - Mexico border region. To examine whether border trade flows can be successfully modeled, short-term time series characteristics of cross-border trade flows through El Paso, Texas are analyzed. A transfer function ARIMA econometric methodology is employed using data from January 1995 to December 2002. Results indicate that economic activity in the United States and Mexico, along with relative prices adjusted for exchange rates play important roles in determining monthly fluctuations in border area trade flows.

Keywords: Merchandise Trade Flows; Transfer ARIMA; Border Region (search for similar items in EconPapers)
JEL-codes: F15 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2004-06-01
New Economics Papers: this item is included in nep-ifn
Note: Type of Document - doc; pages: 8
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