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Tourism expenditures and crisis transmission: a general equilibrium GVAR analysis with network theory

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  • Konstantakis, Konstantinos N.
  • Soklis, George
  • Michaelides, Panayotis G.

Abstract

According to the World Tourism Organization, during the last decades, tourism has become one of the largest and most dynamic economic industries in the world. In this work, we employ a Network General Equilibrium GVAR model to analyze the impact of tourism expenditures on GDP and our approach allows for the existence of dominant economies in the system. The model is estimated simultaneously as a system of equations for a large panel of world economies and the results show that the less developed economies are quite vulnerable to changes in the tourism expenditures of the dominant economies. Meanwhile, USA is found to be largely unaffected by shocks in the tourism expenditures of the less developed economies.

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  • Konstantakis, Konstantinos N. & Soklis, George & Michaelides, Panayotis G., 2017. "Tourism expenditures and crisis transmission: a general equilibrium GVAR analysis with network theory," LSE Research Online Documents on Economics 83531, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:83531
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    Cited by:

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    2. Binbin Li & Kai Du, 2023. "Analysis on the Development Mode of Leisure Agriculture Industrialization Based on General Equilibrium Model," Land, MDPI, vol. 12(1), pages 1-14, January.
    3. Wang, Yong & Han, Linna & Ma, Xuejiao, 2022. "International tourism and economic vulnerability," Annals of Tourism Research, Elsevier, vol. 94(C).
    4. Alessandro Severino & Larysa Martseniuk & Salvatore Curto & Larysa Neduzha, 2021. "Routes Planning Models for Railway Transport Systems in Relation to Passengers’ Demand," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    5. Gunter, Ulrich & Zekan, Bozana, 2021. "Forecasting air passenger numbers with a GVAR model," Annals of Tourism Research, Elsevier, vol. 89(C).
    6. Dimitrios Karamanis, 2022. "Defence partnerships, military expenditure, investment, and economic growth: an analysis in PESCO countries," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 173, Hellenic Observatory, LSE.

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    More about this item

    Keywords

    GVAR USA World economy;

    JEL classification:

    • N0 - Economic History - - General
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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