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The Impact of Approved Destination Status on Chinese Travel Abroad: An Economic Analysis

Author

Listed:
  • Shawn Arita

    (Department of Economics, University of Hawaii at Manoa)

  • Christopher Edmonds

    (Center on the Family, University of Hawaii at Manoa)

  • Sumner La Croix

    (Department of Economics, University of Hawaii at Manoa)

  • James Mak

    (Department of Economics, University of Hawaii at Manoa)

Abstract

Since the early 1990s China’s government has negotiated Approved Destination Status (ADS) with 120 countries. The agreements allow government-approved travel agencies to market group tours and obtain visas in bulk to ADS destinations. We apply a gravity model framework to analyze how ADS has affected Chinese outbound tourist travel from China using Chinese visitor arrivals data from 61 main foreign destinations of mainland Chinese tourists (which account for vast majority of international departures from China) from 1995 to 2005. Fixed effects estimates indicate ADS resulted in significant increases in arrivals from China (averaging 52 percent over three years). We also find evidence of travel diversion as more countries received ADS.

Suggested Citation

  • 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.
    • Handle: RePEc:hai:wpaper:200918
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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_09-18.pdf
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    References listed on IDEAS

    as
    1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    2. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    3. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    4. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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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.
    2. Santeramo, Fabio Gaetano & Barbieri, Carla, 2015. "On the demand for agritourism: a cursory review of methodologies and practice," MPRA Paper 68177, University Library of Munich, Germany.
    3. James Roumasset & Christopher Wada, 2012. "The Economics of Groundwater," Working Papers 2012-4, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    4. Donald Lien & Sucharita Ghosh & Steven Yamarik, 2014. "Does the Confucius institute impact international travel to China? A panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 46(17), pages 1985-1995, June.
    5. Shawn Arita & Sumner La Croix & James Mak, 2012. "How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad," Working Papers 2012-3, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    6. Neelu Seetaram & Sylvain Petit, 2012. "Panel data analysis in Tourism Research," Post-Print hal-01831529, HAL.
    7. Stanislava Pachrová & Eva Janoušková & Jitka Ryšková, 2018. "Disparities in Tourism Demand of UNESCO Destinations," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(S12), pages 1040-1040, November.
    8. Boyang Xu & Daxin Dong, 2020. "Evaluating the Impact of Air Pollution on China’s Inbound Tourism: A Gravity Model Approach," Sustainability, MDPI, vol. 12(4), pages 1-21, February.

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    More about this item

    Keywords

    China Outbound Travel; Approved Destination Status; Gravity Model; Tourism; International Agreements; Travel Liberalization;
    All these keywords.

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