This study analyzes the causes of the recent economic crisis in Cucuta, Colombia,
which stems from the devaluation of the Venezuelan currency and the breakup of
the commercial relations between the two countries. Results suggest that this
region’s economic cycle exhibits a sharp dependence upon the Venezuelan
economy. Therefore, exchange and political shocks had a substantial impact on
real urban economic sectors. This reflects the necessity of considering territorial
development policies that take into account the specificities of borderline regions,
which are naturally attached to neighboring economies, and hence, exposed to
external shocks that affect economic performance.