nep-tur New Economics Papers
on Tourism Economics
Issue of 2013‒08‒23
one paper chosen by
Laura Vici
Universita' di Bologna

  1. How important is tourism for the international transmission of cyclical fluctuations? Evidence from the Mediterranean By Canova, Fabio; Dallari, Pietro

  1. By: Canova, Fabio; Dallari, Pietro
    Abstract: We quantify the importance of the tourism channel for the international transmission of cyclical fluctuations to the Mediterranean basin. We use five destination countries and a number of source countries to provide broad evidence on the link. Source country output shocks produce important fluctuations in international tourism flows. Absent the tourism channel, the output effects in a typical destination country would be reduced by about one-fourth. Imported shocks account for an important portion of the fluctuations in destination countries variables. Policy prescriptions are discussed. JEL Classification: E32, C32
    Keywords: Bayesian random coefficient VARs, International Business Cycles, Mediterranean basin, Tourism flows
    Date: 2013–06

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