| By: |
Zouheir El-Sahli (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - ECM - Ecole Centrale de Marseille) |
| Abstract: |
While it is established that tourism benefits growth through increased
employment and investments, it is not well understood whether tourism has an
effect on exports. This paper explores exports as an additional channel
through which tourism affects domestic economic activity. Using bilateral
tourist and trade flows, I explore the causal effect of tourist flows on
exports. To deal with endogeneity, I construct two instruments that I use on
two different sets of exporters. The evidence points in the same direction. I
find that tourism affects mainly the exports of differentiated products.
Specifically, I find that tourism benefits the exports from non-OECD exporters
of processed food products and this effect is only estimated for South-North
trade with an elasticity close to 1. For European countries, the findings
point in the same direction; tourism affects differentiated consumer products
and processed food with elasticity close to 1, which adds plausibility to the
earlier results. I also find a lagged effect for tourism mainly on the export
of consumer goods (for the two samples) and processed food products (for
European countries). The results suggest that exports is an additional channel
through which tourism can stimulate domestic economic activity in the tourist
destination. |
| Keywords: |
tourism,globalization,trade,gravity,terrorism |
| Date: |
2017–05 |
| URL: |
http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01524530&r=tur |