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International trade in services and inequalities: empirical evaluation and role of tourism services

Author

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  • Sylvain Petit

    (GDI - Gouvernance et développement insulaire - UPF - Université de la Polynésie Française, IDP - Institut du Développement et de la Prospective - EA 1384 - UVHC - Université de Valenciennes et du Hainaut-Cambrésis - IAE - Institut d'Administration des Entreprises - UPHF - Université Polytechnique Hauts-de-France)

Abstract

This study investigates the impact of the international openness in tourism services trade on wage inequality between highly skilled, semiskilled and unskilled workers in the tourism industry. The sample covers 10 developed countries and expands over 15 years. A cointegrated panel data model and an Error Correction Model were used to distinguish between the short-and long-run effects. The results are compared to those of openness of business services and manufactured goods. The findings point out that tourism increases wage inequality at the expense of the least skilled workers in the long and the short-run. The results differ amongst countries.

Suggested Citation

  • Sylvain Petit, 2017. "International trade in services and inequalities: empirical evaluation and role of tourism services," Post-Print hal-01830362, HAL.
    • Handle: RePEc:hal:journl:hal-01830362
    DOI: 10.1177/1354816616672361
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    1. Alina HAGIU & Marinela BARBULESCU, 2019. "The Role Of Wto And International Cooperation On Services Trade Policy," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 18(3), pages 83-90.
    2. Andrea Giampiccoli & Anna Dłużewska & Erasmus Mzobanzi Mnguni, 2022. "Host Population Well-Being through Community-Based Tourism and Local Control: Issues and Ways Forward," Sustainability, MDPI, vol. 14(7), pages 1-17, April.

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    More about this item

    Keywords

    inequality; cointegrated panel model; Error Correction Model (ECM); tourism and poverty; trade of tourism services; openness trade;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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