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The nature of the relationship between international tourism and international trade: the case of German imports of Spanish wine

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  • Christian Fischer
  • Luis Gil-Alana

Abstract

This article deals with the relationship between international trade and tourism. 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, a methodology is used based on long memory regression models, where tourism is supposed to be exogenous. The period covered is January 1998 to November 2004. The results show that tourism has an effect on wine imports that lasts between 2 and 9 months. Disaggregating the imports across the different types of wine, it is observed that only for red wines from Navarra, Penedus and Valdepenas, and to a certain extent for sparkling wine, tourism produces an effect on future import 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 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.
  • Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1345-1359
    DOI: 10.1080/00036840601019349
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    Citations

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    Cited by:

    1. Rinaldo Brau & Anna Maria Pinna, 2013. "Movements of People for Movements of Goods?," The World Economy, Wiley Blackwell, vol. 36(10), pages 1318-1332, October.
    2. Francioni, Barbara & Vissak, Tiia & Musso, Fabio, 2017. "Small Italian wine producers’ internationalization: The role of network relationships in the emergence of late starters," International Business Review, Elsevier, vol. 26(1), pages 12-22.
    3. Zouheir El-Sahli, 2017. "The Role of Inbound Tourist Flows in Promoting Exports," AMSE Working Papers 1721, Aix-Marseille School of Economics, Marseille, France.
    4. 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.
    5. Ayumu Tanaka, 2013. "Geographic Concentration of Foreign Visitors to Japan," Discussion papers e-12-013, Graduate School of Economics Project Center, Kyoto University.
    6. Luis Gil-Alana & Christian Fischer, 2010. "International travelling and trade: further evidence for the case of Spanish wine based on fractional vector autoregressive specifications," Applied Economics, Taylor & Francis Journals, vol. 42(19), pages 2417-2434.

    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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