Peso Acceptance Patterns in El Paso
AbstractThis paper examines the acceptance of peso payments, or currency substitution reverse dollarization, by U.S retail firms near the international border with Mexico. Survey data are drawn from a stratified random sample of 586 retailers located in El Paso, Texas, situated across the border from Ciudad Juarez, Chihuahua, Mexico. Approximately 13 percent of the participant firms accept Mexican pesos in exchange for goods and services. Empirical results indicate that factors such as a firm’s percentage of Spanish speaking employees and distance to the nearest international bridge significantly influence the decision to accept or reject Mexican pesos.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17900.
Date of creation: 17 Apr 2009
Date of revision: 19 Jun 2009
Publication status: Published in Pennsylvania Geographer 1.47(2009): pp. 91-102
Currency Substitution; Mexican Peso; Border Economics; Probit Models;
Find related papers by JEL classification:
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
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