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The economic integration between the United States and Mexico has affected the economic, political and social relations in the border region. The paper seeks to relate the increasing economic integration and business cycles of the economies of San Diego and Tijuana to the development of both national and binational economic organizations in the border region. The methodology of analysis uses both statistical estimations of the economic integration of San Diego and Tijuana and semi-structured interviews of economic organizations to analyze the increasing economic integration and the role and achievements of the cross-border economic organizations. The results showed that cross-border cooperation is predominately controlled by federal and state governments on both sides of the border. However, the main achievements of cross-border economic cooperation have been accomplished by local private organizations. The perspective of further local economic development greatly depends on both the possibility of increased involvement of federal governments and the growing encouragement of regional organizations. [ABSTRACT FROM AUTHOR]