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How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad

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Author Info

  • Shawn Arita

    ()
    (University of Hawaii at Manoa, Department of Economics)

  • Sumner La Croix

    ()
    (UHERO, University of Hawaii at Manoa)

  • James Mak

    ()
    (UHERO, University of Hawaii at Manoa)

Abstract

ChinaÕs Approved Destination Status (ADS) policy governs foreign leisure travel by citizens to ADS-designated countries. To model the effects of ADS on Chinese visitor arrivals, we specify a model of demand for a representative Chinese consumer who values trips to n differentiated foreign destinations. Using panel data for Chinese visitor arrivals for 61 countries from 1985 to 2005, we estimate fixed effects models accounting for selection effects and a semiparametric matched difference-in-differences (DID) model. The semiparametric matched DID estimates indicate that ADS increased Chinese visitor arrivals annually by 10.5 to 15.7 percent in the three-year period following ADS designation.

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File Function: First version, 2012
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Bibliographic Info

Paper provided by University of Hawaii Economic Research Organization, University of Hawaii at Manoa in its series Working Papers with number 2012-3.

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Length: 42 pages
Date of creation: Jun 2012
Date of revision:
Handle: RePEc:hae:wpaper:2012-3

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Keywords: Approved Destination Status; ADS; China; Tourism;

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References

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  1. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
  2. Shawn Arita & Christopher Edmonds & Sumner La Croix & James Mak, 2009. "The Impact of Approved Destination Status on Chinese Travel Abroad: An Economic Analysis," Working Papers 200918, University of Hawaii at Manoa, Department of Economics.
  3. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," Review of Economic Studies, Oxford University Press, vol. 72(1), pages 1-19.
  4. Naudé, Wim & Saayman, Andrea, 2005. "Determinants of tourist arrivals in Africa: a panel data regression analysis," MPRA Paper 16479, University Library of Munich, Germany.
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Cited by:
  1. Shawn Arita & Sumner La Croix & James Mak, 2012. "How China's Approved Destination Status Policy Spurs and Hinders Chinese Travel Abroad," Working Papers 201215, University of Hawaii at Manoa, Department of Economics.

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