Cross-border economy generates development in Tijuana, but displaces locals

May 14, 2025

The cross-border dynamic has transformed Tijuana in recent years, and while it has attracted investment and created better-paying jobs, it has also impacted the lifestyle and cost of living of its population.
Economist Jorge Fonseca Rodríguez considered that "every benefit comes with a cost," especially with the fluctuation of people who work in the United States but live in the city.
He explained that by hosting a large proportion of people whose income is primarily in dollars, this allows cross-border residents to have greater purchasing power compared to those who only earn in pesos.
However, the economist suggested that this negative situation is outweighed by the benefits that have been generated through the investment injected into the northern border region, as well as its proximity to California.
He pointed out that, unlike other parts of the country, especially in the center and south, the arrival of companies due to Baja California's geographical location has encouraged the creation of better-paying jobs. Fonseca Rodríguez explained that this situation has allowed consumption in Tijuana, both among locals and foreigners, to move from limited to restaurants and beach tourism to more complex and diverse services.
This transformation has made Tijuana more resilient, he noted, as the economy is sustained by a binational consumer base that continues to invest in the healthcare, retail, housing, and entertainment sectors.

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