Mexico Evidence on the Regional Retail Impacts of Violent Crime

Thomas M. Fullerton, Jr., Adam G. Walke


Prior research reports mixed results regarding the economic impacts of crime. This study employs data from all regions of Mexico, including border regions in both the north and the south, to examine the effects of homicides on retail activity across Mexico during a period of escalating violence. The results indicate that one additional homicide within a municipality eliminates one retail establishment and one paid job in the retail sector. Furthermore, the negative consequences of violent crime for retailers are augmented by proximity to an international border. This is consistent with previous research findings that cross-border shopping is a key feature of commerce along the international boundaries of Mexico. It suggests that crime waves may disproportionately impact border city retail activity by partially diverting customer traffic to stores located in neighboring countries. This result is also consistent with the finding of recent research that violent conflict in northern Mexico resulted in increased retail activity in some United States border cities.

Full Text:




  • There are currently no refbacks.

Copyright (c) 2018 Thomas M. Fullerton, Jr., Adam G. Walke

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © SCHOLINK INC.   ISSN 2377-1038 (Print)    ISSN 2377-1046 (Online)