The border dilemma: effect of the exchange differential and strategies of the commercial sector of Tulcán

Abstract

This paper is part of the project´s results "Border Development Ecuador - Colombia: Province of Carchi - Department of Nariño; period of analysis 2017-2019 ". The purpose of the study is to answer the following questions: What has been the direct effect of the exchange differential in the opening and closing of commercial businesses in Tulcán city? and what are the key strategies that allow reducing the impact of the exchange differential in local business operations ?. The researchhas a quantitative approach and is descriptive correlational type, non-experimental mode, which worked with simple random sampling with a sample of 218 merchants of Tulcán. The main results indicate that the exchange rate as an independent variable accounts for 77% of the business closure of the city; In addition, traders rule out associativity as a mechanism for mitigating the exchange effect.