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Regional policy and tourism: A quasi-natural experiment

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  • Deng, Taotao
  • Hu, Yukun
  • Ma, Mulan

Abstract

China’s Western Development Strategy (WDS) has generated stark differences in policy environments for tourism development. Considering the WDS as a quasi-natural experiment, the paper applied an increasingly important regression discontinuity design method to tourism studies and explored the causal effect of the WDS on tourism by comparing treated and untreated cities proximal to the geographic boundary of the WDS. We prove that the WDS has caused a significantly positive effect on tourism development and is estimated to be up to 6% and vary from 5.9% to 6.7%. The mechanism analysis indicates that the WDS can affect tourism development through infrastructure construction and tax incentives.

Suggested Citation

  • Deng, Taotao & Hu, Yukun & Ma, Mulan, 2019. "Regional policy and tourism: A quasi-natural experiment," Annals of Tourism Research, Elsevier, vol. 74(C), pages 1-16.
  • Handle: RePEc:eee:anture:v:74:y:2019:i:c:p:1-16
    DOI: 10.1016/j.annals.2018.10.001
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    3. Zhang, Anqi & Liu, Lihua & Liu, Guangqiang, 2020. "High-speed rail, tourist mobility, and firm value," Economic Modelling, Elsevier, vol. 90(C), pages 108-116.
    4. Erick Lahura & Rosario Sabrera, 2020. "Inversion en infraestructura y demanda turística: Una aplicacion del enfoque de control sintético para el caso de Kuelap, Perú," Documentos de Trabajo / Working Papers 2020-491, Departamento de Economía - Pontificia Universidad Católica del Perú.
    5. Hu, Yong & Fisher-Vanden, Karen & Su, Baozhong, 2020. "Technological spillover through industrial and regional linkages: Firm-level evidence from China," Economic Modelling, Elsevier, vol. 89(C), pages 523-545.

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