Theoretical and Applied Economics
No. 3 / 2010 (544)
Does Trade Help to Explain Tourism Demand? The Case of Portugal
Polytechnic Institute of Santarém, ESGTS, Portugal
Abstract. 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.
Contents
The Administrative Convergence in the Balkan Area. Empirical Analysis of Social Policy in Romania and Bulgaria
Convergence of Croatian Financial and Budget Regulations to the Framework and Practices of the European Union
Fiscal Sustainability and Social Cohesion. Common and Specific in EU Sub-models
Does Trade Help to Explain Tourism Demand? The Case of Portugal
Algorithms for the Public Pension System Reform in Romania – a Necessity Imposed by the Global Economic Crisis
Public and Private Relations – a New Philosophy of Management
A SWOT Analysis on the Waste Management Problem in Romania in 2010
Premises in Implementing the Common Consolidated Tax Base System