Exports and Tourism: Testing the Causality

ABSTRACT

This article analyzes the interaction between exports of local processed agro-food products and inbound tourism. On the one hand, international tourism promotes the knowledge about local agro-food products and direct contact with them. On the other hand, the exports of these products, which are linked to the attractiveness and authenticity of the destination, may induce international tourism arrivals. The empirical research is conducted with respect to Portugal and some of the local agro-food products for which it is internationally known. Data for the period between 2000 and 2012 are analyzed using Johansen’s maximum likelihood method and the Granger causality test. The results of the Granger short-run causality test reveal that a relationship exists but the significance and direction of causality differs between the products.

KEYWORDS:

• Authenticity
• exports
• inbound tourism
• local agro-food products
• Portugal