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The long run and short run impact of international tourists’ retail shopping on domestic retail sale

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  • Hassan F. Gholipour
  • Reza Tajaddini
  • Amir E. Andargoli

Abstract

This paper explores the long run and short run effect of international tourists’ retail shopping (TS) on domestic retail sale (RS). Using data from 58 countries from 2004 to 2018 and applying the PMG/ARDL models, we find that TS has a positive and significant impact on RS in the long run. The short run analysis shows that retail industries in large and populous countries with popular tourist attractions are positively affected by the large number of international tourist arrivals and their retail spending. On the contrary, tourists’ retail expenditures in small and thinly populated countries do not have meaningful impacts on retail industries in the short run.

Suggested Citation

  • Hassan F. Gholipour & Reza Tajaddini & Amir E. Andargoli, 2021. "The long run and short run impact of international tourists’ retail shopping on domestic retail sale," Current Issues in Tourism, Taylor & Francis Journals, vol. 24(3), pages 297-303, February.
    • Handle: RePEc:taf:rcitxx:v:24:y:2021:i:3:p:297-303
    DOI: 10.1080/13683500.2020.1732882
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