The US Tourism Trade Balance and Exchange Rate Shock
AbstractThis paper investigates the effect of dollar depreciation on the US tourism trade balance. Export revenue and import spending functions are estimated separately with structural vector autoregressive methods to better capture dynamic adjustments to exchange rate shocks. Quarterly data cover the period of floating exchange rates from 1973 through 2007. Depreciation has no significant effect on tourism export revenue or import spending. US tourists are more sensitive to income than are tourists coming to the US.
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Bibliographic InfoPaper provided by Department of Economics, Auburn University in its series Auburn Economics Working Paper Series with number auwp2011-12.
Date of creation: Sep 2011
Date of revision:
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More information through EDIRC
Balance of Trade; Exchange Rate; Tourism; Structural Vector Autoregressive Model; J-Curve;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- F10 - International Economics - - Trade - - - General
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- Demirden, Tuvana & Pastine, Ivan, 1995. "Flexible exchange rates and the J-curve: An alternative approach," Economics Letters, Elsevier, vol. 48(3-4), pages 373-377, June.
- repec:ebl:ecbull:v:6:y:2007:i:26:p:1-12 is not listed on IDEAS
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