Submission Date

5-6-2026

Document Type

Paper- Restricted to Campus Access

Department

International Relations

Adviser

Johannes Karreth

Committee Member

Rebecca Evans

Committee Member

Ann Karreth

Committee Member

Olga Nicoara

Department Chair

Ann Karreth

Project Description

Border security and economic integration are critical issues in an increasingly globalized world, but it is unclear how modern border fortifications specifically affect economic outcomes like trade and foreign direct investment, which is an important question for policymakers weighing the costs and benefits of investing in border walls, fences, and other infrastructure. I approach this problem by examining border fortifications as both physical barriers that increase transaction costs, and as political signals that may demonstrate state capacity and stability. My research design combines a cross-national quantitative analysis of country-year data from 2000 to 2021 with a focused case study of the U.S.-Mexico border. I analyze measures of border walls, fences, filtering infrastructure, trade flows, and foreign direct investment inflows using multilevel regression models. The results show that border walls are consistently associated with lower levels of trade openness; while fencing and filtering infrastructure portray weaker, more inconsistent relationships. Border fortifications do not have a statistically significant effect on foreign direct investment inflows or growth either. The evidence suggests that border fortifications create frictions that reduce trade without deterring international investment on a macroeconomic level, highlighting the uneven economic consequences of physical border barriers for policymakers.

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