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Does Tourism Promote Cross-Border Trade?

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  • Satheesh Aradhyula
  • Russell Tronstad

Abstract

We estimate a simultaneous bivariate qualitative choice model of Arizona agribusiness firms' propensity to trade and visit as a tourist the cross-border state of Sonora, Mexico. Venture business visits, quantified through the tourism equation, were found to have the largest impact on a firm's propensity to trade. Tourist visits have a greater impact on trade when combined with other firm attributes such as age, perceived need for geographic diversity, foreign language fluency, and firm size, than if considered alone. Our results suggest that there is a role for government agencies to play in overcoming imperfect information related to trade opportunities through facilitating exploratory business venture and tourist visits. Copyright 2003, Oxford University Press.

Suggested Citation

  • Satheesh Aradhyula & Russell Tronstad, 2003. "Does Tourism Promote Cross-Border Trade?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 569-579.
    • Handle: RePEc:oup:ajagec:v:85:y:2003:i:3:p:569-579
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    File URL: http://hdl.handle.net/10.1111/1467-8276.00456
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    Citations

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    Cited by:

    1. Robert Lawson & Jayme Lemke, 2012. "Travel visas," Public Choice, Springer, vol. 153(1), pages 17-36, October.
    2. Nicholas M. Odhiambo & Talknice Saungweme, "undated". "Does International Tourism Spur International Trade In Ssa Countries? A Dynamic Panel Data Analysis," Working Papers AESRI07, African Economic and Social Research Institute (AESRI).
    3. Veysel Avsar, 2020. "Travel Visas and Trade Finance," Economics Bulletin, AccessEcon, vol. 40(1), pages 567-573.
    4. Santana-Gallego, María & Ledesma-Rodríguez, Francisco J. & Pérez-Rodríguez, Jorge V., 2016. "International trade and tourism flows: An extension of the gravity model," Economic Modelling, Elsevier, vol. 52(PB), pages 1026-1033.
    5. Nizar, Muhammad Afdi, 2013. "Pengaruh Pariwisata Terhadap Perdagangan Internasional Di Indonesia [effect of tourism on international trade in Indonesia]," MPRA Paper 65631, University Library of Munich, Germany.
    6. María Santana-Gallego & Francisco Ledesma-Rodríguez & Jorge Pérez-Rodríguez, 2011. "Tourism and trade in OECD countries. A dynamic heterogeneous panel data analysis," Empirical Economics, Springer, vol. 41(2), pages 533-554, October.
    7. Christian Fischer & Luis Gil-Alana, 2009. "The nature of the relationship between international tourism and international trade: the case of German imports of Spanish wine," Applied Economics, Taylor & Francis Journals, vol. 41(11), pages 1345-1359.
    8. Lusk, Jayson L. & Rozan, Anne, 2008. "Public Policy and Endogenous Beliefs: The Case of Genetically Modified Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-20.
    9. Norasingh, Xaysomphet & Machikita, Tomohiro & Ueki, Yasushi, 2015. "South-South technology transfer to Laos through face-to-face contacts," Journal of Business Research, Elsevier, vol. 68(7), pages 1420-1425.
    10. Gil-Alana, Luis A. & Fischer, Christian, 2007. "International traveling and trade: further evidence for the case of Spanish wine based on fractional VAR specifications," 105th Seminar, March 8-10, 2007, Bologna, Italy 7859, European Association of Agricultural Economists.
    11. Kiyong Keum, 2011. "International Tourism and Trade Flows: A Causality Analysis Using Panel Data," Tourism Economics, , vol. 17(5), pages 949-962, October.
    12. María Santana-Gallego & Francisco J. Ledesma-Rodríguez & Jorge V. Pérez-Rodríguez, 2010. "Exchange Rate Regimes and Tourism," Tourism Economics, , vol. 16(1), pages 25-43, March.
    13. Christian Fischer & Luis Alberiko Gil-Alana, 2005. "The Nature of the Relationship between International Tourism and International Trade: The Case of Ge," Faculty Working Papers 15/05, School of Economics and Business Administration, University of Navarra.
    14. Veysel Avsar & Umut Unal, 2014. "Trading Effects of the FIFA World Cup," Kyklos, Wiley Blackwell, vol. 67(3), pages 315-329, August.
    15. María Santana-Gallego & Francisco Ledesma-Rodríguez & Jorge V. Pérez-Rodríguez, 2011. "Tourism and Trade in Small Island Regions: The Case of the Canary Islands," Tourism Economics, , vol. 17(1), pages 107-125, February.
    16. Odhiambo, Nicholas M & Saungweme, Talknice, 2021. "Does international tourism spur international trade in SSA countries? A dynamic panel data analysis," Working Papers 28345, University of South Africa, Department of Economics.
    17. Canh Phuc Nguyen & Binh Quang Nguyen, 2023. "Does the shadow economy matter for tourism consumption? New global evidence," Empirical Economics, Springer, vol. 65(2), pages 729-773, August.
    18. Camelia Surugiu & Marius-Razvan Surugiu, 2011. "Causality Between Tourism Exports And Trade Openness: Empirical Analysis For Romanian Tourism," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(17), pages 100-109, November.

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