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Movements of People for Movements of Goods?

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  • Rinaldo Brau
  • Am Pinna

Abstract

While it is well established to think of international tourism as a type of exports, namely 'home' exports, the potential of tourism flows as an engine for fostering trade among countries is a poorly studied topic. In this paper we show that this relationship can be studied at a very detailed level by exploiting the disaggregation of existing information on international trade and inbound tourism. We consider a sample of 25 countries belonging to the European Union, a region which has been interested by common shocks such as the establishment of the Euro as the new currency for many countries and the liberalization in the air transport market. We carry out a panel data analysis by means of which we assess whether international tourist arrivals by a given country activate additional exports towards the same country. We find not only that tourism can promote exports, but also that this effect displays important differences depending on whether or not consumption goods are considered. This finding is consistent with the idea that the experience of tourists in a given destination reduces the fixed costs of trade, thus facilitating access to the advantages of international trade for more peripheral economies.

Suggested Citation

  • Rinaldo Brau & Am Pinna, 2011. "Movements of People for Movements of Goods?," Working Paper CRENoS 201123, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:201123
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    2. Graneli, Anna & Lodefalk, Magnus, 2014. "Temporary Expats for Export: Firm-Level Evidence," Working Papers 2014:4, Örebro University, School of Business.
    3. Santana-Gallego, María & Ledesma-Rodríguez, Francisco J. & Pérez-Rodríguez, Jorge V., 2016. "International trade and tourism flows: An extension of the gravity model," Economic Modelling, Elsevier, vol. 52(PB), pages 1026-1033.
    4. Delia Popescu & Iulia Monica Oehler-Sincai & Daniel Bulin & Ion Alexandru Tanase, 2018. "Cee-16: A Cluster Analysis Based on Tourism Competitiveness and Correlations With Major Determinants," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(S12), pages 833-833, November.
    5. K Jackson & W Zang, 2015. "Evaluating Methodological Issues in the Tourism Literature: UK outgoing tourism and trade links," Economic Issues Journal Articles, Economic Issues, vol. 20(1), pages 1-42, March.
    6. Magnus Lodefalk, 2016. "Temporary expats for exports: micro-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 733-772, November.

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    More about this item

    Keywords

    tourism and trade; bilateral exports;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • F15 - International Economics - - Trade - - - Economic Integration

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