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Passport, please! Travels, travails and trade

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  • Volker Nitsch

Abstract

A country’s visa policies are widely assumed to have economic consequences. In this short paper, I examine the effect of the ease with which a country’s citizens can enter foreign countries on international trade. Using a specification of the gravity model that avoids the endogeneity problems that typically arise when analyzing the association between ease of travel and the extent of bilateral interactions, I find that countries which issue powerful passports experience more international trade.

Suggested Citation

  • Volker Nitsch, 2019. "Passport, please! Travels, travails and trade," Applied Economics Letters, Taylor & Francis Journals, vol. 26(15), pages 1274-1278, September.
    • Handle: RePEc:taf:apeclt:v:26:y:2019:i:15:p:1274-1278
    DOI: 10.1080/13504851.2018.1545075
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    References listed on IDEAS

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    1. Neiman, Brent & Swagel, Phillip, 2009. "The impact of post-9/11 visa policies on travel to the United States," Journal of International Economics, Elsevier, vol. 78(1), pages 86-99, June.
    2. Volker Nitsch, 2007. "State Visits and International Trade," The World Economy, Wiley Blackwell, vol. 30(12), pages 1797-1816, December.
    3. Solomon W. Polachek & Daria Sevastianova, 2012. "Does conflict disrupt growth? Evidence of the relationship between political instability and national economic performance," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(3), pages 361-388, March.
    4. Andrew K. Rose, 2016. "Like Me, Buy Me: The Effect of Soft Power on Exports," Economics and Politics, Wiley Blackwell, vol. 28(2), pages 216-232, July.
    5. Neumayer, Eric, 2011. "On the detrimental impact of visa restrictions on bilateral trade and foreign direct investment," LSE Research Online Documents on Economics 37226, London School of Economics and Political Science, LSE Library.
    6. Gopinath, G. & Helpman, . & Rogoff, K. (ed.), 2014. "Handbook of International Economics," Handbook of International Economics, Elsevier, edition 1, volume 4, number 4.
    7. Dane Davis & Thomas Gift, 2014. "The Positive Effects of the Schengen Agreement on European Trade," The World Economy, Wiley Blackwell, vol. 37(11), pages 1541-1557, November.
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    Cited by:

    1. Muhammad Halley Yudhistira & Yusuf Sofiyandi & Witri Indriyani & Andhika Putra Pratama, 2021. "Heterogeneous effects of visa exemption policy on international tourist arrivals: Evidence from Indonesia," Tourism Economics, , vol. 27(4), pages 703-720, June.
    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. Kodila-Tedika, Oasis & Khalifa, Sherif, 2021. "Do Leader’s Visits Increase Trade Flows?," MPRA Paper 105577, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F29 - International Economics - - International Factor Movements and International Business - - - Other
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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