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Does travelling foster international trade?

Rosén Björkhage, Andreas LU (2014) NEKH01 20141
Department 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)
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author
Rosén Björkhage, Andreas LU
supervisor
organization
course
NEKH01 20141
year
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},
  keyword      = {International travelling,bilateral trade,gravity model,international economics.},
  language     = {eng},
  note         = {Student Paper},
  title        = {Does travelling foster international trade?},
  year         = {2014},
}