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The Nature of the Relationship between International Tourism and International Trade: The Case of Ge

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  • Christian Fischer
  • Luis Alberiko Gil-Alana

    (School of Economics and Business Administration, University of Navarra)

Abstract

This paper deals with the relationship between international trade and tourism. In particular, we focus on the effect that German tourism to Spain has on German imports of Spanish wine. Due to the different stochastic properties of the series under analysis, which display different orders of integration, we use a methodology based on long memory regression models, where tourism is supposed to be exogenous. The results show that at the aggregate level, tourism has an effect on wine imports that lasts between two and nine months. Disaggregating the imports across the different types of wine it is observed that only for red wines from Navarra, Pened's and Valdepeas, and to a certain extent for sparkling wine, tourism produces an effect on its future demand. From a policy-making perspective our results imply that the impact of tourism on the host economy is not only direct and short-term but also oblique and delayed, thus reinforcing the case for tourism as a means for economic development.

Suggested Citation

  • 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.
    • Handle: RePEc:una:unccee:wp1505
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    File URL: http://www.unav.edu/documents/10174/6546776/1132586609_wp1505.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Denise Fry & Andrea Saayman & Melville Saayman, 2010. "The Relationship Between Tourism And Trade In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 78(3), pages 287-306, September.
    3. Sarmidi, Tamat & Salleh, Norlida H, 2010. "Dynamic inter-relationship between trade, economic growth and tourism in Malaysia," MPRA Paper 21056, University Library of Munich, Germany.
    4. 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.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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