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Tourism revenues and residential foreign investment flows in Spain: a simultaneous model

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  • Luis Sastre Jimenez

Abstract

The aim of this work is to analyse the determinants of the tourism revenues and the residential foreign investment, in Spain, during the period 1967-1998. To do so, a two equation simultaneous model is proposed to be estimated. The specification highlights the simultaneous and direct interdependence of the tourism revenues and the residential foreign investment flows. This result contrasts with the traditional standard specification of the international tourism demands in Spain. Nonlinear simultaneous estimations, cointegration techniques and a battery of specification tests are the econometric tools applied in the work.

Suggested Citation

  • Luis Sastre Jimenez, 2002. "Tourism revenues and residential foreign investment flows in Spain: a simultaneous model," Applied Economics, Taylor & Francis Journals, vol. 34(11), pages 1399-1410.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1399-1410
    DOI: 10.1080/00036840110099234
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