Cross-border homicide impacts on economic activity in El Paso

Drug-related homicides in Ciudad Juárez drastically increased beginning in 2008. Few studies have been carried out which assess the economic impacts of crime and homicides. Furthermore, the existing literature generally lacks regional assessment efforts. Because of geographical proximity and close economic ties, this paper reviews some of the potential impacts the Ciudad Juárez homicides may have on the El Paso regional economy. A time series data approach is employed to quantify links between organized crime homicides in Ciudad Juárez and economic conditions in El Paso as measured by the metropolitan business cycle index and total nonagricultural employment. Findings indicate that fluctuations in the number of Ciudad Juárez homicides impact both variables in statistically significant manners at multiple time lags. Copyright Springer-Verlag Berlin Heidelberg 2015