Movements of People for Movements of Goods?

15 Pages Posted: 5 Oct 2013

See all articles by Rinaldo Brau

Rinaldo Brau

Università di Cagliari - Department of Economics & Business; Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Anna Maria Pinna

Universita di Cagliari - Department of Economics; Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Date Written: October 2013

Abstract

Whilst 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 that has been interested by common shocks such as the establishment of the euro as the new currency for many countries and the liberalisation 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

Brau, Rinaldo and Pinna, Anna Maria, Movements of People for Movements of Goods? (October 2013). The World Economy, Vol. 36, Issue 10, pp. 1318-1332, 2013, Available at SSRN: https://ssrn.com/abstract=2336340 or http://dx.doi.org/10.1111/twec.12104

Rinaldo Brau (Contact Author)

Università di Cagliari - Department of Economics & Business ( email )

V. S. Ignazio 17
Cagliari 09123, CA 09123
Italy
+39 070 6753315 (Phone)
+39 178 2243016 (Fax)

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY

Anna Maria Pinna

Universita di Cagliari - Department of Economics ( email )

V. S. Ignazio 17
Cagliari 09123, CA 09123
Italy

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY

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