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Abstract

This research note examines the phenomenon of cross-border shopping between the United States and Canada as a form of borderlands tourism. This activity has always existed in the region and has traditionally been characterized by high but consistent numbers of Canada-to-US flows and lower but consistent numbers of US-to-Canada flows. However, in 1997, owing to an increase in value of the Canadian dollar and other economic variables, the number of Canadian shopping trips to the United States increased dramatically until 1992, when the value of the Canadian dollar began to fall. This in tum has led to the rapid increase in levels of American travel to Canada, including shopping trips, in the mid- and late-1990s. Characteristics of cross-border shopping are examined together with some of the economic and social impacts of the rise and. decline of this phenomenon in American and Canadian border communities.

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