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Intra-tourism trade, income distribution and tourism endowment: an econometric investigation

Author

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  • Joseph Hanna

    (IDP - Institut du Développement et de la Prospective - EA 1384 - UVHC - Université de Valenciennes et du Hainaut-Cambrésis - IAE - Institut d'Administration des Entreprises - UPHF - Université Polytechnique Hauts-de-France)

  • Loic Levi
  • Sylvain Petit

    (IDP - Institut du Développement et de la Prospective - EA 1384 - UVHC - Université de Valenciennes et du Hainaut-Cambrésis - IAE - Institut d'Administration des Entreprises - UPHF - Université Polytechnique Hauts-de-France)

Abstract
Empirical investigation (Nowak et al., 2012) points out that vertical intra-industry trade (VIIT) in Europe is the dominant type of intra-industry trade (IIT) in the tourism sector. This article is the first in tourism literature to test separately the determinants of vertically and horizontally differentiated services, using the most recent models in the theory of IIT. We examine bilateral trade among all trading partners of the sample of European countries, covering the period 2000 to 2008. We show that differences in Gross Domestic Product (GDP) per capita and the income-distribution overlap, as well as cultural proximity, are the most significant driving forces behind VIIT for European countries. Geographic distance has a negative effect, whereas specific tourism endowments and relative size of the economies are less conclusive. These results confirm theory predictions and most of the empirical findings related to the pattern of VIIT for the manufacturing sector. As expected, we find that determinants of VIIT cannot explain horizontal intra-industry trade (HIIT) in tourism. We suggest two alternative methods of estimation: Generalized Least Squares (GLS) logistic function and the fractional logit estimator. We conclude that there are common factors explaining IIT in the manufacturing and tourism trades.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Joseph Hanna & Loic Levi & Sylvain Petit, 2013. "Intra-tourism trade, income distribution and tourism endowment: an econometric investigation," Post-Print hal-02948770, HAL.
    • Handle: RePEc:hal:journl:hal-02948770
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    Cited by:

    1. Jean-Jacques Nowak & Sylvain Petit, 2021. "A reconsideration of tourism specialization in Europe," Tourism Economics, , vol. 27(8), pages 1833-1838, December.
    2. Chi, Pei-Yu & Lee, Kuei-Chun & Chang, Kuo-I, 2022. "Causal effect of tourist visa exemption schemes on international tourist arrivals," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 427-449.
    3. Vincent Dropsy & Christian Montet & Bernard Poirine, 2020. "Tourism, insularity, and remoteness: A gravity-based approach," Tourism Economics, , vol. 26(5), pages 792-808, August.
    4. Sylvain Petit & Neelu Seetaram, 2018. "Measuring the Effect of Revealed Cultural Preferences on Tourism Exports," Post-Print hal-02133249, HAL.
    5. Sylvain Petit & Neelu Seetaram, 2019. "Measuring The Effect Of Revealed Cultural Preferences On Measuring The Effect Of Revealed Cultural Preferences On Tourism Exports," Post-Print hal-01924443, HAL.

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    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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