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Economic Impacts of Black Friday in the northern border of Mexico

By: Dr. Alejandro Díaz-Bautista, Economist (PhD).

  • There’s a consumer leak in Baja California and in the northern border during 2017.
  • Borderlanders left at least $1 billion in Southern California during Black Friday 2017.

“During this week of” Thanksgiving or the day of the turkey” there were long lines of motorists to cross from Baja California to San Diego, because of Black Friday offers in the United States, with high economic impacts for businesses on the other side of the border, “said Dr. Alejandro Díaz-Bautista, an economist and national researcher at Conacyt, as well as a research professor at El Colegio de la Frontera Norte (El Colef).

It is estimated that the border residents of Baja California left an economic spill of about one billion dollars in Southern California, during the week of Black Friday, despite the increase in the price of the dollar in recent weeks.

According to studies by Colef and the San Diego Association of Governments (Sandag, by its acronym in English), the leak of consumers throughout the year represents between 6 and 7 billion dollars and the holiday season is the most important, since people take advantage doing their Christmas shopping and purchasing of items for which they waited for to take advantage of the offers in stores. Attracted by low prices offered starting the day of the turkey or “Thanksgiving” and “Black Friday”, the borderlanders began to do their holiday shopping for 2017.

The leak of consumers is a phenomenon generated by the economic integration of the regions of Baja California and Southern California, the geographical location of the area and the traditional choice of the border to decide where to do their shopping, but mainly because of competitive businesses prices which don’t have excessive tax regulations and so they can offer real discounts.

Traditionally, many people still go shopping in the neighboring country. The residents of Tijuana cross and do their “shopping” in San Ysidro and throughout the county of San Diego. Many border landers, stay overnight since the day before and fight to enter the stores.

Another interesting economic phenomenon is that sales have increased by the internet. This form of online sales has increased a lot in the United States. The economy of Tijuana is dollarized, since people receive dollars and save them to take advantage of that moment over “Black Friday” in the United States because on that day there are real discounts on home appliances and some other items of excellent quality.

The beginning of Christmas shopping starts, as it has been traditionally, from the third week of November and will end until January 6. This is a phenomenon on the border where local businesses compete with the “Good Weekend” (Buen Fin), against the “Black Friday” of the United States.

Mexican citizens who choose to make Christmas purchases in the United States is part of a dynamism that is registered in the Baja California border, and the situation expands from Tijuana, Baja California to Tamaulipas, with consumer leaks amounting to more than 2 billion of dollars.

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