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Regional Tourism Competition in the Baltic States: a Spatial Stochastic Frontier Approach

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  • Pavlyuk, Dmitry

Abstract

This paper aimed at a statistical analysis of competition for tourists between regions within Baltic states (Estonia, Latvia, Lithuania) and estimation relative efficiency levels of regions. We apply a modern approach called Spatial Stochastic Frontier and corresponded to spatial modification of a stochastic frontier model. We specify two alternative spatial stochastic frontier models – distance and travel-time based to identify an influence of existing transport network on research results. Using the model we analyse region-specific factors (tourism infrastructure, employment, geographical position and natural attractors) having an effect on a number of visitors and estimate regions' efficiency values. We discover a significant level of inefficiency of Baltic states regions and propose some ways to improve the situation.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25052.

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Date of creation: Aug 2010
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Handle: RePEc:pra:mprapa:25052

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Keywords: spatial stochastic frontier; efficiency; competition; regional tourism; transport network;

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  1. Erniel B. Barrios & Rouselle F. Lavado, 2010. "Spatial Stochastic Frontier Models," Microeconomics Working Papers 23091, East Asian Bureau of Economic Research.
  2. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, Elsevier, vol. 19(2-3), pages 233-238, August.
  3. G�ran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
  4. Maria Francesca Cracolici & Peter Nijkamp, 2006. "Efficiency and Productivity of Italian Tourist Destinations: A Quantitative Estimation based on Data Envelopment Analysis and the Malmquist Method," Tinbergen Institute Discussion Papers 06-096/3, Tinbergen Institute.
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