An analysis of Canadian cross-border travel

Abstract

Cross-border shopping by Canadians in the United States is examined for the seven Canadian provinces bordering the United States. Data on same day automobile trips and expenditures obtained from Statistics Canada, International Travel Section are analyzed using multiple regression techniques. New Brunswick, British Columbia and Ontario demonstrated the most cross-border shopping activity as measured by per capita same day automobile trips and real per capita same day automobile trip expenditures. Across the provinces, cross-border trips and expenditures were driven by per capita income, the appreciation of the Canadian dollar, the ratio of Canadian to US gasoline prices, and the onset of the Goods and Services Tax (GST). There were regional differences in the determinants of cross-border shopping. The exchange rate was most sensitive on per capita trips in Ontario, Manitoba, and Saskatchewan; while per capita income was most sensitive in New Brunswick, Manitoba, and Saskatchewan. The gasoline price variable was most sensitive in British Columbia, while the GST had its strongest impact in Alberta. Une analyse des voyages canadiens à travers la frontière. On examine la pratique des Canadiens dans sept provinces de faire des courses aux USA. L'étude utilise des données des voyages automobiles d'une journée, des dépenses et des techniques de régression multiple. Dans les sept provinces, les voyages et les dépenses dépendaient des revenus par habitant, l'évaluation du dollar canadien, les prix de l'essence aux deux pays et le début du Taxe sur les Produits et Services (TPS). Le taux d'échange était le plus sensible en Ontario, Manitoba et Saskatchewan, et le revenu par habitant était le plus sensible au New Brunswick, Manitoba et Saskatchewan. Les prix de l'essence était plus sensible en Colombie britannique, et le TPS était le plus fort en Alberta.