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Comparative Advantage in Tourism - A Supply-Side Analysis of Tourism Flows

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  • Jie Zhang

    ()

  • Camilla Jensen

    ()

Abstract

The purpose of the paper is to relate the tourism demand model with the traditional theories that explain international trade flows. In the existing tourism literature, tourism flows and tourism demand forecasts are typically explained by the demand-side variables. But in the traditional trade theories, international trade flows are explained from the supply-side variables, i.e. the comparative advantage of the exporting countries. A model is proposed in the paper, trying to explain in a modern and global economy, the factors that from a supply-side perspective can decide the comparative advantage of countries in a certain type of service activity. The preliminary results render a strong support for the relevance of certain supply-side factors in explaining international tourism flows such as both natural endowments and created assets associated with foreign investments, hotel capacity and level of development.

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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p183.

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Date of creation: Aug 2005
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Handle: RePEc:wiw:wiwrsa:ersa05p183

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  1. John H. Dunning & Matthew McQueen, 1981. "The eclectic theory of international production: A case study of the international hotel industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 2(4), pages 197-210, December.
  2. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(2), pages 169-189, Spring.
  3. Gianmarco I. P. Ottaviano & Diego Puga, 1998. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 21(6), pages 707-731, 08.
  4. Farok J Contractor & Sumit K Kundu, 1998. "Modal Choice in a World of Alliances: Analyzing Organizational Forms in the International Hotel Sector," Journal of International Business Studies, Palgrave Macmillan, Palgrave Macmillan, vol. 29(2), pages 325-356, June.
  5. John Whalley, 2003. "Assessing the Benefits to Developing Countries of Liberalization in Services Trade," NBER Working Papers 10181, National Bureau of Economic Research, Inc.
  6. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  7. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-53, February.
  8. Mutinelli, Marco & Piscitello, Lucia, 2001. "Foreign direct investment in the banking sector: the case of Italian banks in the '90s," International Business Review, Elsevier, Elsevier, vol. 10(6), pages 661-685, December.
  9. M. Thea Sinclair, 1998. "Tourism and economic development: A survey," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 34(5), pages 1-51.
  10. Moshirian, Fariborz, 2001. "International investment in financial services," Journal of Banking & Finance, Elsevier, Elsevier, vol. 25(2), pages 317-337, February.
  11. Thursby, Jerry G & Thursby, Marie C, 1987. "Bilateral Trade Flows, the Linder Hypothesis, and Exchange Risk," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 488-95, August.
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Cited by:
  1. Teelucksingh, Sonja S. & Watson, Patrick K., 2013. "Linking tourism flows and biological biodiversity in Small Island Developing States (SIDS): evidence from panel data," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 18(04), pages 392-404, August.

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