Economic Impact of the Homeland Security Advisory System: The Cost of Heightened Border Security

摘要

The majority of literature written on the economic impact of border security has indicated that the increased security following 9/11 has had adverse effects on the flow of foreign imports. This study measures the direct cost the Homeland Security Advisory System (HSAS) had on U.S. Customs and Border Protection (CBP) overtime spending and the indirect cost on the U.S. economy by reducing the daily flow of imports. Three case studies were conducted at the United States largest ports of entry. Each compared CBP overtime spending and the daily flow of imports during the seven periods the HSAS was elevated to ORANGE between 2002 and 2005. The study found that increased threat levels of the HSAS resulted in 50% more overtime spending by CBP. However, the HSAS had no impact on the daily flow of imports into the United States during the seven periods of elevated security between 2002 and 2005.