Does Trade Help to Explain Tourism Demand? The Case of Portugal
The tourism industry has expanded in recent years due to internal and external environmental forces. These forces, income, trade, consumer price, and geographical distance are interconnected. Accounting for imperfect competition and increasing returns to scale, the new trade theory offers the explan...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2010-03-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: | http://www.ectap.ro/articole/451.pdf |
| _version_ | 1818615704285347840 |
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| author | Nuno Carlos LEITÃO |
| author_facet | Nuno Carlos LEITÃO |
| author_sort | Nuno Carlos LEITÃO |
| collection | DOAJ |
| description | The tourism industry has expanded in recent years due to internal and external environmental forces. These forces, income, trade, consumer price, and geographical distance are interconnected. Accounting for imperfect competition and increasing returns to scale, the new trade theory offers the explanation of dynamic gains from international trade. A large number of studies attempt to test the hypothesis that there is a link between trade and tourism. Most of the studies show that trade and tourism are positively correlated. This paper specifies static and dynamic panel demand models for tourism in Portugal and estimates demand equations using tourist inflow data for the period 1995-2006. We find that bilateral trade, immigration, border, and geographical distance between Portugal and countries of origin are the main determinants of tourism to Portugal. The dynamic panel data approach indicates that trade, population, and income are more important determinants than relative price. |
| first_indexed | 2024-12-16T16:38:08Z |
| format | Article |
| id | doaj.art-1e39bcabb863420b81ac94bf330631b4 |
| institution | Directory Open Access Journal |
| issn | 1841-8678 |
| language | English |
| last_indexed | 2024-12-16T16:38:08Z |
| publishDate | 2010-03-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-1e39bcabb863420b81ac94bf330631b42022-12-21T22:24:24ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86782010-03-0103(544)03(544)6474Does Trade Help to Explain Tourism Demand? The Case of PortugalNuno Carlos LEITÃOThe tourism industry has expanded in recent years due to internal and external environmental forces. These forces, income, trade, consumer price, and geographical distance are interconnected. Accounting for imperfect competition and increasing returns to scale, the new trade theory offers the explanation of dynamic gains from international trade. A large number of studies attempt to test the hypothesis that there is a link between trade and tourism. Most of the studies show that trade and tourism are positively correlated. This paper specifies static and dynamic panel demand models for tourism in Portugal and estimates demand equations using tourist inflow data for the period 1995-2006. We find that bilateral trade, immigration, border, and geographical distance between Portugal and countries of origin are the main determinants of tourism to Portugal. The dynamic panel data approach indicates that trade, population, and income are more important determinants than relative price.http://www.ectap.ro/articole/451.pdftradetourism demandpanel datatourism forecastingqualitative methodsPortugal. |
| spellingShingle | Nuno Carlos LEITÃO Does Trade Help to Explain Tourism Demand? The Case of Portugal Theoretical and Applied Economics trade tourism demand panel data tourism forecasting qualitative methods Portugal. |
| title | Does Trade Help to Explain Tourism Demand? The Case of Portugal |
| title_full | Does Trade Help to Explain Tourism Demand? The Case of Portugal |
| title_fullStr | Does Trade Help to Explain Tourism Demand? The Case of Portugal |
| title_full_unstemmed | Does Trade Help to Explain Tourism Demand? The Case of Portugal |
| title_short | Does Trade Help to Explain Tourism Demand? The Case of Portugal |
| title_sort | does trade help to explain tourism demand the case of portugal |
| topic | trade tourism demand panel data tourism forecasting qualitative methods Portugal. |
| url | http://www.ectap.ro/articole/451.pdf |
| work_keys_str_mv | AT nunocarlosleitao doestradehelptoexplaintourismdemandthecaseofportugal |