An analysis of Canadian cross-border travel

Matteo, Livio Di; Matteo, Rosanna Di

doi:10.1016/0160-7383(95)00038-0

“…Di Matteo and Di Matteo (1996) examine the determinants of Canadian cross-border shopping, which rose tremendously between 1986-1991, by using data on same day automobile trips and expenditures from 7 Canadian provinces bordering the U.S. They report that 90% of the variation is due to income, exchange rate, gasoline price differences, the Goods and Services Tax plus seasonal factors.…”

Section: International Literaturementioning

confidence: 99%

Cross-Border Commuting and Consuming: An Empirical Investigation

Mathä

¹

,

Porpiglia

²

,

Ziegelmeyer

³

2014

SSRN Journal

0

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The HFCN collects household-level data on households' finances and consumption in the euro area through a harmonised survey. The HFCN aims at studying in depth the micro-level structural information on euro area households' assets and liabilities. The objectives of the network are: Terms of use: Documents in EconStor may1) understanding economic behaviour of individual households, developments in aggregate variables and the interactions between the two;2) evaluating the impact of shocks, policies and institutional changes on household portfolios and other variables;3) understanding the implications of heterogeneity for aggregate variables; 4) estimating choices of different households and their reaction to economic shocks; 5) building and calibrating realistic economic models incorporating heterogeneous agents; 6) gaining insights into issues such as monetary policy transmission and financial stability.The refereeing process of this paper has been co-ordinated by a team composed of Gabriel Fagan (ECB), Pirmin Fessler (Oesterreichische Nationalbank), Michalis Haliassos (Goethe University Frankfurt) , Tullio Jappelli (University of Naples Federico II), Sébastien PérezDuarte (ECB), Jiri Slacalek (ECB), Federica Teppa (De Nederlandsche Bank), Peter Tufano (Oxford University) and Philip Vermeulen (ECB).The paper is released in order to make the results of HFCN research generally available, in preliminary form, to encourage comments and suggestions prior to final publication. The views expressed in the paper are the author's own and do not necessarily reflect those of the ESCB. Abstract: This paper analyses empirically how cross-border consumption varies across product and services categories and across household characteristics. It focuses on the part of crossborder sales that arise due to work-related cross-border crossings; it analyses the crossborder consumption behaviour of cross-border commuter households residing in Belgium, France and Germany and working in Luxembourg. In total, it is estimated that these households spend €925 million per annum in Luxembourg, reflecting about 17% of their gross annual income from Luxembourg and contributing about 10% to total household final consumption expenditure in Luxembourg. Cross-border consumption expenditure is shown to depend on individual and household characteristics, such as total household income, the number of cross-border commuters in the household, distance between home and work, as well as price level (...

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“…Firm leverage is used to account for financial conditions and assets are used as a measure of firm size. z irt−1 is a vector of industry-, province-, state-and aggregate-level controls 17 A region is defined by a province and state combination. 18 The distance-real exchange rate interaction term used here is a simpler form of the spatial competition model in Pinkse, Slade, and Brett (2002).…”

Section: Sales Employment and Profitsmentioning

confidence: 99%

“…Examining the correlations between growth rates of the series, we find that the correlation coefficients between the real exchange rate and travelers are 0.10 for Canadians and -0.11 for Americans. 3 Other studies have documented significant relationships between the number of such trips and the Canadian-US nominal and real exchange rate (see, for example, Chandra, Head, and Tappata, 2014; Di Matteo and Di Matteo, 1996;Ferris, 2000;and Timothy and Butler, 1995).…”

Section: Introductionmentioning

confidence: 99%

Firm Dynamics in Retail Trade: The Response of Canadian Retailers to Exchange Rate Shocks

Baggs

¹

,

Beaulieu²,

Fung

³

et al. 2016

Rev International Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract We use comprehensive firm-level data to estimate the responses of heterogeneous Canadian retail firms to real exchange rate movements. Our analysis focuses on a period characterized by large fluctuations in the Canadian dollar, providing an opportunity to quantify both intensive and extensive margin responses in retail industries to real exchange rate shocks and to examine how those responses differ across firms, locations, and sub-industries. Our results indicate that a real Canadian currency appreciation significantly reduces a retailer's sales, employment, and profits. The strength of this negative effect is decreasing in the distance of a retailer from the US-Canada border. We do not find evidence of a strong relationship between real exchange rate movements and the number of operating firms nor the probability of firm survival. These findings are consistent with the view that a real Canadian dollar appreciation increases cross-border shopping by Canadians, resulting in a negative demand shock for Canadian retailers, and the dominant response by firms to such a shock is through the intensive margin. Terms of use: Documents in

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“…Creating a comfortable, attractive shopping environment is thus a key aspect of tourist industry development (Block et al, 1994;Jones, 1999;Lin, 2004;Yuksel, 2004). Not only can the existence of a first-class shopping environment enhance tourists' overall satisfaction with the tourist destination as a whole (Heung & Cheng, 2000;Yuksel, 2007), it can also encourage tourists to spend more money (Jones, 1999), thereby providing increased economic benefits for the tourist destination (Jansen-Verbeke, 1991;Di Matteo & Di Matteo, 1996;Timothy & Butler, 1995).…”

Section: Introductionmentioning

confidence: 99%