IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v29y2023i1p157-171.html
   My bibliography  Save this article

Does official development assistance promote tourism demand for donor countries? Evidence from Switzerland

Author

Listed:
  • Luciano Lopez
  • Giuliano Bianchi
  • Yong Chen

Abstract

This study estimates the effect of official development assistance (ODA) on tourism demand of recipient countries for donor countries. We analyzed a panel dataset of 15 recipient countries of Switzerland’s aid from 2005 to 2017, for which data are available. We used both tourist arrivals at lodging establishments, particularly hotels, in Switzerland and hotel nights as proxies for recipient countries’ tourism demand in Switzerland. Using a modified gravity model of trade for empirical testing, we found that an increase of every US$1000 ODA to recipient countries would generate 3.6 tourist arrivals and almost four hotel nights in the following year, after controlling for the effects of GDP and population of recipient countries, the exchange rate and the distance between recipient countries and Switzerland, and trade facilitators. We conclude that ODA generates a positive externality on donor countries, namely, that recipient countries incline to increase their imports from donor countries, at least partially in the form of inbound tourism in donor countries.

Suggested Citation

  • Luciano Lopez & Giuliano Bianchi & Yong Chen, 2023. "Does official development assistance promote tourism demand for donor countries? Evidence from Switzerland," Tourism Economics, , vol. 29(1), pages 157-171, February.
    • Handle: RePEc:sae:toueco:v:29:y:2023:i:1:p:157-171
    DOI: 10.1177/13548166211041416
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/13548166211041416
    Download Restriction: no
    File URL: https://libkey.io/10.1177/13548166211041416?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:29:y:2023:i:1:p:157-171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.