nep-tur New Economics Papers
on Tourism Economics
Issue of 2023‒04‒03
two papers chosen by
Laura Vici
Università di Bologna

  1. Do International Tourist Arrivals Change Residents' Attitudes Towards Immigration? A Longitudinal Study of 28 European Countries By Ivlevs, Artjoms; Smith, Ian
  2. Tourism and financial development in South Africa: A trivariate approach By Musakwa, Mercy T; Odhiambo, Nicholas M

  1. By: Ivlevs, Artjoms (University of the West of England, Bristol); Smith, Ian (University of the West of England, Bristol)
    Abstract: Can international tourist arrivals change residents' attitudes towards immigrants and immigration? We discuss possible underlying mechanisms and provide the first evidence on this question using data from the European Social Survey (2002-2019; n=333, 505). We find that, as tourist arrivals grow, residents become more positive towards immigration in Eastern Europe. In Western Europe, the relationship tends to turn from positive to negative at relatively high levels of tourism. The instrumental variable analysis suggests that incoming tourism has a positive causal effect on attitudes towards immigration in both Western and Eastern Europe. Overall, our study reveals an overlooked dimension of the tourism-migration nexus and highlights the role that international tourism may play in shaping attitudes towards immigration and, through these attitudes, immigration policy and flows, immigrant integration and more open and inclusive societies in tourism-receiving countries.
    Keywords: tourism, attitudes towards immigration, inclusion, Europe, instrumental variable analysis
    JEL: J61 L83
    Date: 2023–02
  2. By: Musakwa, Mercy T; Odhiambo, Nicholas M
    Abstract: In this study, we examine the causal relationship between tourism and financial development in South Africa using data from 1995 to 2017. The study attempts to establish if financial development Granger-cause tourism in South Africa? Autoregressive distributed lag (ARDL) bounds testing approach and ECM-based Granger causality test were used to examine the link. When broad money was used as a proxy for financial development, a unidirectional causality from tourism to financial development was found in the short and the long run. However, when domestic credit provided by financial sector and market capitalisation of domestic listed companies were used as proxies, a bidirectional causal effect was confirmed in the short run and a unidirectional causal relationship from financial development to tourism in the long run. The results confirm the reinforcing effect between tourism and financial development in the short run with financial development taking the centre stage in the long run.
    Keywords: Financial development; tourism; South Africa; real effective exchange rate; ECM-based causality testing
    Date: 2022–12

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