Does travelling foster international trade?
(2014) NEKH01 20141Department of Economics
- Abstract
- The world´s total expenditures regarding leisure travelling and related expenditures
corresponded to approximately 3000 billions USD in 2010. This substantial value makes the
travelling industry and related markets important in an economic aspect. Data posted by the
WTO states that between the years of 1995-2005 the world’s amount of tourism arrivals
increased by approximately 50 %, and additionally UNWTO predicts that this progression is
likely to continue.
This implies that there are good reasons to analyse the economic impacts of travelling
in a global context.
This thesis aims to uncover if international travelling fosters international trade by
analysing if the amount of tourism arrivals in a country has a positive effect on... (More) - The world´s total expenditures regarding leisure travelling and related expenditures
corresponded to approximately 3000 billions USD in 2010. This substantial value makes the
travelling industry and related markets important in an economic aspect. Data posted by the
WTO states that between the years of 1995-2005 the world’s amount of tourism arrivals
increased by approximately 50 %, and additionally UNWTO predicts that this progression is
likely to continue.
This implies that there are good reasons to analyse the economic impacts of travelling
in a global context.
This thesis aims to uncover if international travelling fosters international trade by
analysing if the amount of tourism arrivals in a country has a positive effect on the country´s
value of exports going to the EU15 countries. The time period covered is the years between
1995-2011.
Previous research shows that the causality running from travelling to trade could be
one or two-way, which means that our regression models are likely subjected to
complications related to endogeneity. We attempt to solve this by using two different
variables in order to capture travelling frequency. First we regress with respect to the amount
of tourism arrivals, and additionally with respect to an instrumental variable consisting of the
amount of World Heritage Sites. Our results show that the amount of tourism arrivals has a
positive effect of the value of bilateral trade, while the instrumental variable does not have a
significant effect. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4433663
- author
- Rosén Björkhage, Andreas LU
- supervisor
- organization
- course
- NEKH01 20141
- year
- 2014
- type
- M2 - Bachelor Degree
- subject
- keywords
- International travelling, bilateral trade, gravity model, international economics.
- language
- English
- id
- 4433663
- date added to LUP
- 2014-05-06 09:29:49
- date last changed
- 2015-09-12 04:17:50
@misc{4433663, abstract = {{The world´s total expenditures regarding leisure travelling and related expenditures corresponded to approximately 3000 billions USD in 2010. This substantial value makes the travelling industry and related markets important in an economic aspect. Data posted by the WTO states that between the years of 1995-2005 the world’s amount of tourism arrivals increased by approximately 50 %, and additionally UNWTO predicts that this progression is likely to continue. This implies that there are good reasons to analyse the economic impacts of travelling in a global context. This thesis aims to uncover if international travelling fosters international trade by analysing if the amount of tourism arrivals in a country has a positive effect on the country´s value of exports going to the EU15 countries. The time period covered is the years between 1995-2011. Previous research shows that the causality running from travelling to trade could be one or two-way, which means that our regression models are likely subjected to complications related to endogeneity. We attempt to solve this by using two different variables in order to capture travelling frequency. First we regress with respect to the amount of tourism arrivals, and additionally with respect to an instrumental variable consisting of the amount of World Heritage Sites. Our results show that the amount of tourism arrivals has a positive effect of the value of bilateral trade, while the instrumental variable does not have a significant effect.}}, author = {{Rosén Björkhage, Andreas}}, language = {{eng}}, note = {{Student Paper}}, title = {{Does travelling foster international trade?}}, year = {{2014}}, }